Nation editor THanong KHanthong Has an exclusive interview with Rakesh Saxena before the Canadian Supreme Court rules on his extradition.
It was quite some time ago when we last talked. When I placed a call to Rakesh Saxena on Wednesday night, I was expecting that he might not be in any mood to talk to me. I had heard about his deteriorating health from his oversize and his drinking habit. The long course of his legal battle against the extradition charge from the Royal Thai Government was due for a decisive outcome in the following day.
I always have his Vancouver number in my mobile. One of his bodyguards answered the phone.
"Excuse me, who's speaking?" he asked. He was very polite.
"I would like to talk to Mr Rakesh. Please tell him that my name is Thanong and I am calling from Bangkok. He knows me very well."
"Ok, wait a moment."
There was a series of slight beeping sound as my line was being transferred to Rakesh's phone. He picked up the phone. Over the next 10 minutes, he fired his words like a machine gun. I had a hard time keeping track with his rumbling over words in his throat.
He still sounded like Rakesh, the same old Rakesh that I have known for almost two decades. As always, he was upbeat, straight to the point, daring and unemotional. His trademark is his boyish laugh "hehehehe" at the end of his "youknowwhatImean" sentence.
He did not show the slightest sign of any worries. Everything he said was just a matter of fact.
I asked him about the prospect of the extradition case. "The police and Thai authorities are making a big fuss in Bangkok. They are expecting to have you back in Bangkok," I told him.
Indeed, the Thai authorities had staged a big PR stunt over this extradition case as if the Supreme Court of Canada (Ottawa) would not grant him leave to appeal the deportation order. If Rakesh were to lose his appeal, he would be whisked away in his wheel chair to Bangkok immediately.
Rakesh kept his cool. He was not worried at all.
He said the Supreme Court of Canada would render its decision on the "application for Leave to Appeal" the lower court's decision on Thursday at 10.00 am Vancouver time.
In June, the B.C. Court of Appeal rejected his bid to overturn earlier rulings upholding his removal.
"If Leave is granted, then it will take another 47 months to pursue the Leave," he said. "If Leave is not granted, the legal process technically comes to a close."
"That means I am going to see you in Bangkok," I said.
"Yes, then nobody can do anything about it," he said.
But he went further to explain that the decision is on Leave, in the first place; it is not a guilt or innocence decision.
"The Supreme Court of Canada (Ottawa) only grants leave if the case is of national importancea different criteria altogether," he said.
If Rakesh win his appeal for yet another time, chances are that he can delay the process until the statutory limitation of the case expires in July 2010. He has been arguing that he would be killed if he were sent back to Bangkok. Prison conditions in Thailand are also poor.
Representatives from the police, the public prosecutors and the Foreign Ministry have already flown off to Vancouver to hear the verdict. Some Thai reporters have also flown to Beijing, hoping to join Rakesh and the Thai team on the conฌnecting flight back to Bangkok.
For the Abhisit government, it is waiting for a big show time. Many members of the coalition partners (Phi Ban, Phi Ne, Phi Su, Phi Nan, for instance) have ties to BBC.
BBC went into rampant high finance, sweet heart loans to the politicans and takeover deals until it lost its steam. The banking authorities eventually had to pay off almost Bt200 billion for the damage of BBC.
Rakesh left Thailand in 1996, never to return. He is now being held as a "house arrest" in his luxury residence worth US$1.5 million. From his residence, before his health deteriorates, he continued to be active in making financial deals and write his columns in Cross Border Reports.
If Rakesh were to make his presence in Bangkok, the politicians would not have any good sleep. The Democrats would have an upper hand over them.
Rakesh has been fighting this protracted battle since 1996. Many people in Thailand, including me, have written off this case as something that would not make any progress nor would it ever end. Two other high profile extradition cases involve Pin Chakkaphak of the now defunct Finance One Group and Thaksin Shinawatra. Pin prevailed over the extradition charge in the UK court of justice. The peripatetic Thaksin has refused to become a sitting target, and the Thai authorities are reluctant to proceed with the extradition charge against him.
"I have heard that your health is not good and that you have suffered from a stroke," I said.
"Since suffering a stroke this March, the left side of the body is paralyzed and I am under heavy stroke-related medication and physiotherapy treatment," he said.
As Rakesh is the Money Wizard, he can move the financial markets at his fingertip. If he loses his appeal at the Supreme Court, he might touch the "send" button from his computer screen since he has nothing else to lose.
Thursday, October 29, 2009
China's Sany Heavy Industry plans Thai showroom, factory
Sany Heavy Industry, a Chinese manufacturer of engineering machinery, plans to spend US$40 million (Bt1.34 billion) to open a showroom and plant as a production base for Southeast Asia.
Engineering machinery is used in such activities as general construction, road construction and hoisting.
This project is in line with China's efforts to expand businesses outside of the country.
The company has already established Sany Heavy Industry (Thailand) as a regional office.
Yang Zhihua, assistant to the president of the company, yesterday said Thailand was chosen at this time for several reasons.
Thailand is centrally located in Southeast Asia. Regional sales have shown impressive growth of more than 50 per cent a year, even during times of recession. And the region has suffered less from the global crisis.
The business environment here, including infrastructure and skilled labour, is conducive to investing, and Thailand and China have had good relations for several decades.
Southeast Asia this year is expected to contribute $40 million out of Sany Heavy Industry's targeted worldwide revenue of 30 billion yuan (Bt147 billion), up from 20 billion yuan last year.
The Sany Group, parent of Sany Heavy Industry, has been ranked as a top-10 competitive and trusted listed company in China for three years running. It markets in 130 countries.
The first phase of Sany's investment plan involves setting up a showroom in Bangkok next year at a cost of between $5 million and $6 million, while the second phase will entail building a plant in the Amata City Industrial Estate within three years.
"The Thai production base has the capacity to sell a wide range of machinery worth a combined $50 million per year. Besides Thailand and China, we already operate in the US, India and Germany. We're establishing plants in many destinations, including Europe and South America," he said.
Zhihua expects Sany (Thailand) to generate revenue of Bt500 million next year.
Xia Feng, general manager of Sany Heavy Industry (Thailand), said the market for engineering machinery was worth about $400 million, with Caterpillar the leader. Sany expects to acquire a 30-per-cent share within three years.
Sany's customers include Sino-Thai Engineering and Construction.
Engineering machinery is used in such activities as general construction, road construction and hoisting.
This project is in line with China's efforts to expand businesses outside of the country.
The company has already established Sany Heavy Industry (Thailand) as a regional office.
Yang Zhihua, assistant to the president of the company, yesterday said Thailand was chosen at this time for several reasons.
Thailand is centrally located in Southeast Asia. Regional sales have shown impressive growth of more than 50 per cent a year, even during times of recession. And the region has suffered less from the global crisis.
The business environment here, including infrastructure and skilled labour, is conducive to investing, and Thailand and China have had good relations for several decades.
Southeast Asia this year is expected to contribute $40 million out of Sany Heavy Industry's targeted worldwide revenue of 30 billion yuan (Bt147 billion), up from 20 billion yuan last year.
The Sany Group, parent of Sany Heavy Industry, has been ranked as a top-10 competitive and trusted listed company in China for three years running. It markets in 130 countries.
The first phase of Sany's investment plan involves setting up a showroom in Bangkok next year at a cost of between $5 million and $6 million, while the second phase will entail building a plant in the Amata City Industrial Estate within three years.
"The Thai production base has the capacity to sell a wide range of machinery worth a combined $50 million per year. Besides Thailand and China, we already operate in the US, India and Germany. We're establishing plants in many destinations, including Europe and South America," he said.
Zhihua expects Sany (Thailand) to generate revenue of Bt500 million next year.
Xia Feng, general manager of Sany Heavy Industry (Thailand), said the market for engineering machinery was worth about $400 million, with Caterpillar the leader. Sany expects to acquire a 30-per-cent share within three years.
Sany's customers include Sino-Thai Engineering and Construction.
SAXENA DENIED CANADIAN APPEAL
Rakesh Saxena, a former executive at the Bangkok Bank of Commerce (BBC), whose collapse signalled regulatory failures that led to the 1997 Asian financial crisis, has lost a bid at Canada's highest court to avoid extradition to face fraud charges in Thailand.
The Supreme Court of Canada yesterday denied Saxena's requast for a hearing at which he would have tried to oveturn a lower-court's decision upholding the extradition. The high court gave on reason for its decision.
Saxena, 57, fled to Canada in May 1996 shortly after the Thai government seized the bank to stop a run on deposits triggered by a central bank report that about Bt78 billion of the bank's loans were delinquent. Many of the loans were extended to top executives, their families and friends and politicians, the report said.
The seizure forced the Bank of Thailand's governor to resign and portended a region-wide financial crisis a year later, when the baht's devaluation caused Asian currencies to tumble. Half of the loans at Thai banks went bad.
"Bangkok Bank of Commerce was one of the first cases that exposed problems with Thailand's regulatory environment," said Virapong Boonyobhas, director of the Business Crime and Money Laundering Data Bank at Chulalongkorn University.
Saxena is accused of conspiring to embezzle Bt1.6 billion from the bank, according to a 2006 British Columbia Court of Appeal ruling upholding his extradition.
NOT GIVING UP
Citi Trading, led by Saxena, obtained the loan fraudulently, Judge Kenneth Mackenzie wrote, citing government documents used to support the extradition request. Saxena used the money to pay personal debts as well as those of his other companies, the judge said. Saxena repaid about Bt650 million.
Saxena told bloomberg News in a 1997 telephone interview that he had taken no money from the bank, because as an adviser, he had no authority.
Saxena cannot be prosecuted in Thailand, because there is not enough evidence, his lawyer, Amandeep Singh, said in a telephone interview on Tuesday.
"We haven't given up at this point," Singh said, adding that he would consider his options after the ruling.
To force Saxena onto a plane and send him to Thailand immediately after the ruling would be "draconian", Singh said. Saxena had a stroke in March and is confined to a whellchair, the attorney said.
He did not immediately respond yesterday to a request for comment.
LONG PROCEEDINGS
"To say that the proceedings in Canada have been protracted would be an understatement," Mackenzie wrote three years ago.
Thailand sought Saxena's extradition soon after he arrived in Canada. The 13-year battle has been the longest in Canadian history. Karlheinz Schreiber, a former arms-industry lobbyist, this year lost a 10-year fight against extradition to Germany.
Saxena was free on bail for the first eight years, under what Mackenzie called unusual terms. He was required to pay the cost of supervision, estimated at US$40,028 (now Bt1.34 million) a month.
The fugitive argued that he could not get a fair trial in Thailand and would face possible danger because of alleged human-rights violations in the country, according to Canadian court files.
"There has never been any evidence adduced by the aplicant that he, a criminal defendant, faces the risk of maltreatment," British Columbia Judge John Hall wrote on May 15 on the behalf of a three-member panel that upheld the extradition.
NO MISCONDUCT EVIDENCE
"Allegations that foreign authorities are going to misconduct themselves in relation to a fugitive should not be given credence in the absence of evidence," the judge wrote.
In 2005, Thailand's Criminal Court sentenced Krirkkiat Jalichandra, the bank's former president, to 50 years in prison and fined him $472 million.
A year later, the Anti-Money Laundering Office seized plot of land owned by Saxena worth $2.9 million, the first of his assets to be seized in the country.
The Supreme Court of Canada yesterday denied Saxena's requast for a hearing at which he would have tried to oveturn a lower-court's decision upholding the extradition. The high court gave on reason for its decision.
Saxena, 57, fled to Canada in May 1996 shortly after the Thai government seized the bank to stop a run on deposits triggered by a central bank report that about Bt78 billion of the bank's loans were delinquent. Many of the loans were extended to top executives, their families and friends and politicians, the report said.
The seizure forced the Bank of Thailand's governor to resign and portended a region-wide financial crisis a year later, when the baht's devaluation caused Asian currencies to tumble. Half of the loans at Thai banks went bad.
"Bangkok Bank of Commerce was one of the first cases that exposed problems with Thailand's regulatory environment," said Virapong Boonyobhas, director of the Business Crime and Money Laundering Data Bank at Chulalongkorn University.
Saxena is accused of conspiring to embezzle Bt1.6 billion from the bank, according to a 2006 British Columbia Court of Appeal ruling upholding his extradition.
NOT GIVING UP
Citi Trading, led by Saxena, obtained the loan fraudulently, Judge Kenneth Mackenzie wrote, citing government documents used to support the extradition request. Saxena used the money to pay personal debts as well as those of his other companies, the judge said. Saxena repaid about Bt650 million.
Saxena told bloomberg News in a 1997 telephone interview that he had taken no money from the bank, because as an adviser, he had no authority.
Saxena cannot be prosecuted in Thailand, because there is not enough evidence, his lawyer, Amandeep Singh, said in a telephone interview on Tuesday.
"We haven't given up at this point," Singh said, adding that he would consider his options after the ruling.
To force Saxena onto a plane and send him to Thailand immediately after the ruling would be "draconian", Singh said. Saxena had a stroke in March and is confined to a whellchair, the attorney said.
He did not immediately respond yesterday to a request for comment.
LONG PROCEEDINGS
"To say that the proceedings in Canada have been protracted would be an understatement," Mackenzie wrote three years ago.
Thailand sought Saxena's extradition soon after he arrived in Canada. The 13-year battle has been the longest in Canadian history. Karlheinz Schreiber, a former arms-industry lobbyist, this year lost a 10-year fight against extradition to Germany.
Saxena was free on bail for the first eight years, under what Mackenzie called unusual terms. He was required to pay the cost of supervision, estimated at US$40,028 (now Bt1.34 million) a month.
The fugitive argued that he could not get a fair trial in Thailand and would face possible danger because of alleged human-rights violations in the country, according to Canadian court files.
"There has never been any evidence adduced by the aplicant that he, a criminal defendant, faces the risk of maltreatment," British Columbia Judge John Hall wrote on May 15 on the behalf of a three-member panel that upheld the extradition.
NO MISCONDUCT EVIDENCE
"Allegations that foreign authorities are going to misconduct themselves in relation to a fugitive should not be given credence in the absence of evidence," the judge wrote.
In 2005, Thailand's Criminal Court sentenced Krirkkiat Jalichandra, the bank's former president, to 50 years in prison and fined him $472 million.
A year later, the Anti-Money Laundering Office seized plot of land owned by Saxena worth $2.9 million, the first of his assets to be seized in the country.
Work starts on Trump's Scottish golf resort
Work on a new golf resort in Scotland being built by US tycoon Donald Trump started on Wednesday, despite fierce opposition from local people.
The 1-billion pound (Bt55-billion) coastal resort in Balmedie, near Aberbeen in northeast Scotland, will feature two golf courses, a hotel and around 1,000 holiday homes.
But several local people are still refusing to sell their homes to make way for the site amid a high-profile campaign backed by Oscar-winning actress Tilda Swinton, who lives in the region.
Trump's son Donald Trump Junior, who was at Balmedia as the work started, said he hoped golfers would be able to tee off between 18 months' and two years' time.
Earlier, he described the protestors as "teenage people", accusing them of "little childish stunts".
"We are trying to deliver a golf course that can really be looked at as the greatest golf course anywhere in the world," he told BBC radio on Wednesday.
"The vast majority of the people of the northeast want this project to go forward and have been incredible supporters of us."
But opponents say the local council is giving Trump favaourable treatment because of his wealth and fame, boosted in recent years by his role as host US reality television show "The Apprentice".
The "Tripping Up Trump" group is threatening legal action against the plans, which they say will also be bad for the local environment.
Officials insist they have acted within the rules.
Initial work on the site, which got the green light from councillors on Tuesday, will involve planting marram grass in a bid kto stabilise a large area of sand, erecting fencing on dunes and carryifng out preparatory earthworks.
The golf development is backed by Scotland's devolved government, run by the pro-independence Scottish National Party.
Scotland's tourism and economic development agencies also support it, saying it will attract high-spending visitors from aroung the world.
The 1-billion pound (Bt55-billion) coastal resort in Balmedie, near Aberbeen in northeast Scotland, will feature two golf courses, a hotel and around 1,000 holiday homes.
But several local people are still refusing to sell their homes to make way for the site amid a high-profile campaign backed by Oscar-winning actress Tilda Swinton, who lives in the region.
Trump's son Donald Trump Junior, who was at Balmedia as the work started, said he hoped golfers would be able to tee off between 18 months' and two years' time.
Earlier, he described the protestors as "teenage people", accusing them of "little childish stunts".
"We are trying to deliver a golf course that can really be looked at as the greatest golf course anywhere in the world," he told BBC radio on Wednesday.
"The vast majority of the people of the northeast want this project to go forward and have been incredible supporters of us."
But opponents say the local council is giving Trump favaourable treatment because of his wealth and fame, boosted in recent years by his role as host US reality television show "The Apprentice".
The "Tripping Up Trump" group is threatening legal action against the plans, which they say will also be bad for the local environment.
Officials insist they have acted within the rules.
Initial work on the site, which got the green light from councillors on Tuesday, will involve planting marram grass in a bid kto stabilise a large area of sand, erecting fencing on dunes and carryifng out preparatory earthworks.
The golf development is backed by Scotland's devolved government, run by the pro-independence Scottish National Party.
Scotland's tourism and economic development agencies also support it, saying it will attract high-spending visitors from aroung the world.
Wednesday, October 28, 2009
Central bank dusts off more than 20 Saxena cases
The Bank of Thailand is preparing to dust off more than 20 lawsuits against fugitive financier Rakesh Saxena in light of his potential return to Thailand.
Saxena: May be extradited tomorrow
Mr Saxena, a former adviser to the collapsed Bangkok Bank of Commerce (BBC), is expected to arrive back in Bangkok tomorrow if the Supreme Court of Canada rejects his latest appeal against extradition.
The court is scheduled to hand down its verdict today.
BoT assistant governor Arkabusk Krairiksh said the statutes of limitations for most of the cases the BoT planned to file against Mr Saxena had not expired.
"All of the cases pending for Mr Saxena will be resumed if he is brought back," Mr Arkabusk said.
Chanchai Boonritchaisri, the central bank's senior director of the Legal and Litigation Department, said Mr Saxena had been involved directly and indirectly in several legal cases related to BBC.
He said there were more than 20 cases pending for Mr Saxena involving BBC, which collapsed in 1995 under the weight of its non-performing loans.
Seksan Bangsombun, chief prosecutor for economic and resource cases, said he had assigned a team of prosecutors to work on cases in which Mr Saxena was named as a suspect. This was so prosecutors could indict Mr Saxena in these cases once he arrived back in Thailand.
Sirisak Tiyapan, chief prosecutor for foreign affairs, will be in charge of returning Mr Saxena to Thailand if he fails in his appeal against extradition.
Police spokesman Pongsapat Pongcharoen said Mr Saxena would be held at the Crime Suppression Division prison pending interrogation if he was extradited from Canada.
Central Investigation Bureau chief Tha-ngai Prasajaksatru said a new investigating team headed by Pol Maj Gen Panya Mamen, the deputy CIB chief, had been appointed to work on criminal cases against Mr Saxena. Pol Lt Gen Tha-ngai said police investigators had forwarded cases of alleged embezzlement involving Mr Saxena to the public prosecutor for indictment in 1996, but Mr Saxena fled the country before police could issue an arrest warrant for him.
Mr Saxena is accused by the public prosecutor of colluding with BBC executives to defraud the bank of more than 20 billion baht.
Mr Saxena has sought asylum in Canada for more than a decade.
Saxena: May be extradited tomorrow
Mr Saxena, a former adviser to the collapsed Bangkok Bank of Commerce (BBC), is expected to arrive back in Bangkok tomorrow if the Supreme Court of Canada rejects his latest appeal against extradition.
The court is scheduled to hand down its verdict today.
BoT assistant governor Arkabusk Krairiksh said the statutes of limitations for most of the cases the BoT planned to file against Mr Saxena had not expired.
"All of the cases pending for Mr Saxena will be resumed if he is brought back," Mr Arkabusk said.
Chanchai Boonritchaisri, the central bank's senior director of the Legal and Litigation Department, said Mr Saxena had been involved directly and indirectly in several legal cases related to BBC.
He said there were more than 20 cases pending for Mr Saxena involving BBC, which collapsed in 1995 under the weight of its non-performing loans.
Seksan Bangsombun, chief prosecutor for economic and resource cases, said he had assigned a team of prosecutors to work on cases in which Mr Saxena was named as a suspect. This was so prosecutors could indict Mr Saxena in these cases once he arrived back in Thailand.
Sirisak Tiyapan, chief prosecutor for foreign affairs, will be in charge of returning Mr Saxena to Thailand if he fails in his appeal against extradition.
Police spokesman Pongsapat Pongcharoen said Mr Saxena would be held at the Crime Suppression Division prison pending interrogation if he was extradited from Canada.
Central Investigation Bureau chief Tha-ngai Prasajaksatru said a new investigating team headed by Pol Maj Gen Panya Mamen, the deputy CIB chief, had been appointed to work on criminal cases against Mr Saxena. Pol Lt Gen Tha-ngai said police investigators had forwarded cases of alleged embezzlement involving Mr Saxena to the public prosecutor for indictment in 1996, but Mr Saxena fled the country before police could issue an arrest warrant for him.
Mr Saxena is accused by the public prosecutor of colluding with BBC executives to defraud the bank of more than 20 billion baht.
Mr Saxena has sought asylum in Canada for more than a decade.
BOON TURNS TO CHINA AFTER SELLING HOSPITAL STAKE
Property tycoon Boon Vanasin recently unloaded shares in Piyavate Hospital to Red Bull owner Chaleo Yoovidhya so he can focus more on hospital investment in China.
"China will be my latest country for investing in healthcare. I believe revenue from that industry in that country will exceed revenue from all of my businesses in Thailand, both healthcare and property, within five years," Boon said.
He said he spent much of his time in China now, overseeing construction of his hospitals. Despite the opportunities afforded by the world's most populous country, investment in China is quite difficult for foreigners, and so he finds he must be on hand there.
Boon's hospital arm, the Thonburi Hospital Group, sold its entire 40-per-cent stake in Piyavate Hospital, although he maintains his personal 5-per-cent holding and remains a director.
The group generates annual revenue of Bt3 billion from 17 hospitals, while Boon's property business generates about Bt2 billion per annum.
Boon's foreign-investment arm, WJ International Healthcare, is constructing three Chinese hospitals at a combined cost exceeding Bt1 billion, with a different Chinese partner for each one: the military, the Foreign Ministry and the Red Cross Society of China.
Boon plans to open three hospitals a year in China, serving mainly foreigners.
He said the Thonburi Hospital Group agreed to sell its shares in Piyavate Hospital roughly five months ago, obtaining Bt400 million from the deal. The money will go towards the Bt900-million expansion of Thonburi Hospital 1 and Thonburi Hospital 2.
The group will spend Bt400 million to build new outpatient and inpatient buildings at Thonburi Hospital 1, after which capacity will double in the outpatient building to serve 3,000 patients a day, while inpatient beds will increase 25 per cent to 500.
A budget of Bt500 million has been earmarked for a new outpatient building at Thonburi Hospital 2 that can serve 1,500 outpatients daily, up from 800 now.
Boon said another reason for selling the Piyavate shares were his and Chaleo's conflicting opinions on the business's direction. He wanted to embark upon a major Bt2-billion upgrade of Piyavate, in order to make it more competitive with other private hospitals, but Chaleo wants the 16-year-old hospital to grow more slowly.
Boon resigned as Piyavate's chairman but signed an agreement with Chaleo retaining the right to become Piyavate Hospital's major shareholder within three years. If he does return in that capacity, he may let his heirs hold the stake.
Piyavate CEO and president Nithi Mahanonda said Chaleo planned to bring in more doctors from several fields, cut unnecessary costs and make the most beneficial use of the hospital's facilities. After five years of losses, the hospital is expected to post a net profit next year, with revenue increasing 15 per cent.
Nithi expects revenue of Bt1 billion this year, up 25 per cent from last year. The company will book a net loss estimated at Bt60 million, an improvement from last year's Bt300-million loss.
Piyavate expects to take six years to clear its accumulated losses of Bt800 million.
Nithi said with the transaction, Chaleo's children and grandchild now hold 75 per cent of the hospital's registered capital of Bt2.1 billion, while 19 per cent is held physicians.
He said Piyavate had spent nearly Bt200 million on renovating its building and would increase the number of beds from 100 to 150 within six months. It is also adding more full- and part-time physicians to attract more patients, especially foreigners, who are higher margin.
Piyavate plans to become a top-five private hospital in the near future.
"China will be my latest country for investing in healthcare. I believe revenue from that industry in that country will exceed revenue from all of my businesses in Thailand, both healthcare and property, within five years," Boon said.
He said he spent much of his time in China now, overseeing construction of his hospitals. Despite the opportunities afforded by the world's most populous country, investment in China is quite difficult for foreigners, and so he finds he must be on hand there.
Boon's hospital arm, the Thonburi Hospital Group, sold its entire 40-per-cent stake in Piyavate Hospital, although he maintains his personal 5-per-cent holding and remains a director.
The group generates annual revenue of Bt3 billion from 17 hospitals, while Boon's property business generates about Bt2 billion per annum.
Boon's foreign-investment arm, WJ International Healthcare, is constructing three Chinese hospitals at a combined cost exceeding Bt1 billion, with a different Chinese partner for each one: the military, the Foreign Ministry and the Red Cross Society of China.
Boon plans to open three hospitals a year in China, serving mainly foreigners.
He said the Thonburi Hospital Group agreed to sell its shares in Piyavate Hospital roughly five months ago, obtaining Bt400 million from the deal. The money will go towards the Bt900-million expansion of Thonburi Hospital 1 and Thonburi Hospital 2.
The group will spend Bt400 million to build new outpatient and inpatient buildings at Thonburi Hospital 1, after which capacity will double in the outpatient building to serve 3,000 patients a day, while inpatient beds will increase 25 per cent to 500.
A budget of Bt500 million has been earmarked for a new outpatient building at Thonburi Hospital 2 that can serve 1,500 outpatients daily, up from 800 now.
Boon said another reason for selling the Piyavate shares were his and Chaleo's conflicting opinions on the business's direction. He wanted to embark upon a major Bt2-billion upgrade of Piyavate, in order to make it more competitive with other private hospitals, but Chaleo wants the 16-year-old hospital to grow more slowly.
Boon resigned as Piyavate's chairman but signed an agreement with Chaleo retaining the right to become Piyavate Hospital's major shareholder within three years. If he does return in that capacity, he may let his heirs hold the stake.
Piyavate CEO and president Nithi Mahanonda said Chaleo planned to bring in more doctors from several fields, cut unnecessary costs and make the most beneficial use of the hospital's facilities. After five years of losses, the hospital is expected to post a net profit next year, with revenue increasing 15 per cent.
Nithi expects revenue of Bt1 billion this year, up 25 per cent from last year. The company will book a net loss estimated at Bt60 million, an improvement from last year's Bt300-million loss.
Piyavate expects to take six years to clear its accumulated losses of Bt800 million.
Nithi said with the transaction, Chaleo's children and grandchild now hold 75 per cent of the hospital's registered capital of Bt2.1 billion, while 19 per cent is held physicians.
He said Piyavate had spent nearly Bt200 million on renovating its building and would increase the number of beds from 100 to 150 within six months. It is also adding more full- and part-time physicians to attract more patients, especially foreigners, who are higher margin.
Piyavate plans to become a top-five private hospital in the near future.
PM denies influencing ruling
Prime Minister Abhisit Vejjajiva is distancing his government from a Council of State recommendation that ousted prime minister Thaksin Shinawatra be stripped of his police rank and royal decorations.
Thaksin Shinawatra first wore the police uniform in 1973.
Mr Abhisit Wednesday said the government had not influenced the council's ruling on this matter, which was strictly between the Royal Thai Police and the government's legal advisory body.
"The Royal Thai Police asked the Council of State about the matter, and now the ruling has come out it will have to comply," he said.
The Council of State recommended on Tuesday that the fugitive prime minister be stripped of his police rank and royal decorations because he had been convicted and sentenced to two years in jail. Thaksin was a police lieutenant colonel before he built his business empire and entered politics.
The Supreme Court's Criminal Division for Holders of Political Positions found him guilty in October of last year of a conflict of interest in relation to the sale of a prime piece of real estate on Ratchadaphisek Road to his then wife.
Mr Abhisit said the revoking of Thaksin's police rank would be handled by the Royal Thai Police while the recall of his royal decorations would be undertaken by the relevant agencies.
Procedures call for the Secretariat of the Cabinet to propose the recall of the decorations to the prime minister for endorsement and then forward the matter to the Office of His Majesty's Principal Private Secretary. The recall, once it has royal endorsement, would be announced in the royal gazette.
The former prime minister has received nine royal decorations, the highest being the Knight Grand Commander (Second Class, higher grade) of the Most Illustrious Order of Chulachomklao, bestowed in 2002.
Thaksin wrote on his Twitter page yesterday that "it is a normal practice for this government... if they could find a law to kill me, they would have done.
"Law should be enforced for peace of society, justice, and equality, but this government chooses to enforce for political outcomes. Now I have to sing the song Khob Khun Thi Some Term (Thanks for repeatedly hitting me)."
Thaksin supporters have also come out to criticise moves to revoke his police rank and royal decorations.
Core Puea Thai Party member Chalerm Yubamrung said the move appeared to be politically motivated. It came just days after Cambodian Prime Minister Hun Sen offered Thaksin a refuge and a job as his economic adviser.
"The government may or may not take advice from the Council of State," he said. "It depends whether or not the advice is useful to the government."
Mr Chalerm said the offence of which Thaksin was found guilty does not justify stripping him of his rank under the police's code.
Thaksin Shinawatra first wore the police uniform in 1973.
Mr Abhisit Wednesday said the government had not influenced the council's ruling on this matter, which was strictly between the Royal Thai Police and the government's legal advisory body.
"The Royal Thai Police asked the Council of State about the matter, and now the ruling has come out it will have to comply," he said.
The Council of State recommended on Tuesday that the fugitive prime minister be stripped of his police rank and royal decorations because he had been convicted and sentenced to two years in jail. Thaksin was a police lieutenant colonel before he built his business empire and entered politics.
The Supreme Court's Criminal Division for Holders of Political Positions found him guilty in October of last year of a conflict of interest in relation to the sale of a prime piece of real estate on Ratchadaphisek Road to his then wife.
Mr Abhisit said the revoking of Thaksin's police rank would be handled by the Royal Thai Police while the recall of his royal decorations would be undertaken by the relevant agencies.
Procedures call for the Secretariat of the Cabinet to propose the recall of the decorations to the prime minister for endorsement and then forward the matter to the Office of His Majesty's Principal Private Secretary. The recall, once it has royal endorsement, would be announced in the royal gazette.
The former prime minister has received nine royal decorations, the highest being the Knight Grand Commander (Second Class, higher grade) of the Most Illustrious Order of Chulachomklao, bestowed in 2002.
Thaksin wrote on his Twitter page yesterday that "it is a normal practice for this government... if they could find a law to kill me, they would have done.
"Law should be enforced for peace of society, justice, and equality, but this government chooses to enforce for political outcomes. Now I have to sing the song Khob Khun Thi Some Term (Thanks for repeatedly hitting me)."
Thaksin supporters have also come out to criticise moves to revoke his police rank and royal decorations.
Core Puea Thai Party member Chalerm Yubamrung said the move appeared to be politically motivated. It came just days after Cambodian Prime Minister Hun Sen offered Thaksin a refuge and a job as his economic adviser.
"The government may or may not take advice from the Council of State," he said. "It depends whether or not the advice is useful to the government."
Mr Chalerm said the offence of which Thaksin was found guilty does not justify stripping him of his rank under the police's code.
Morgan eyes China, HK
Morgan De Toi (Thailand) will export its lingerie to China and Hong Kong next year and import a new French brand to tap the mass market in Thailand.
The company produces and distributes lingerie and leather bags, and imports women's clothing for sale in Thailand.
It was set up by Morgan, a French apparel-maker, and Saha Group, Thailand's largest and most diverse textile and garment manufacturer.
China is expected to become the largest market for lingerie, Morgan director Marin Leelanuwatana said yesterday.
The domestic market generates 70 per cent of Morgan's lingerie sales and exports 30 per cent, but if the company succeeds in the China market, that ratio will be reversed, she said.
Lingerie contributes 60 per cent of the company's total sales, follow by women's apparel at 20 per cent and leather bags at 20 per cent.
Morgan now expects its sales to increase 11 per cent to Bt170 million this year. It had targeted sales growth at 15 per cent but the economic crisis has throttled its exports.
"Exports witnessed a drop of 20 per cent this year, especially to Taiwan and South Korea, because both countries rely on the US economy. Even if the global economy recovers, the export situation will not improve like the domestic market, which started to pick up in the third quarter. That helps the company to see some sales growth," she said.
The company forecasts no progress in the export situation next year, so it will have to depend on the domestic market.
Morgan's projection of sales growth of 15 per cent next year does not include China because the company has to wait and see the results of its attempt at market penetration there.
The company will also start selling leather bags in the Asian market after achieving its sales goals in Thailand.
"We have adjusted the price structure for bags to match our competitors. Our price was higher than theirs but when we reduced prices by 10 per cent, sales shot up 54 per cent, from 10-per-cent growth in previous years," she said.
The company will launch Cache Cache, a French apparel brand from its parent Morgan that is produced in China, for the mass market in Thailand.
The latest brand is priced lower than local brands, as in the company's experience, consumers are more cautious with their spending and will purchase those products that represent value for their money.
The company is also considering cutting women's apparel prices by 20 per cent after the Asean Free Trade Agreement (Afta) ends duties on imports and exports among Asean countries. The company now pays 30 per cent on imports of women's clothing.
However, Afta will also open the market to many Asean lingerie brands. Morgan has to quickly build brand awareness for its products especially lingerie because consumers are less familiar with Morgan's lingerie than its women's apparel.
The company produces and distributes lingerie and leather bags, and imports women's clothing for sale in Thailand.
It was set up by Morgan, a French apparel-maker, and Saha Group, Thailand's largest and most diverse textile and garment manufacturer.
China is expected to become the largest market for lingerie, Morgan director Marin Leelanuwatana said yesterday.
The domestic market generates 70 per cent of Morgan's lingerie sales and exports 30 per cent, but if the company succeeds in the China market, that ratio will be reversed, she said.
Lingerie contributes 60 per cent of the company's total sales, follow by women's apparel at 20 per cent and leather bags at 20 per cent.
Morgan now expects its sales to increase 11 per cent to Bt170 million this year. It had targeted sales growth at 15 per cent but the economic crisis has throttled its exports.
"Exports witnessed a drop of 20 per cent this year, especially to Taiwan and South Korea, because both countries rely on the US economy. Even if the global economy recovers, the export situation will not improve like the domestic market, which started to pick up in the third quarter. That helps the company to see some sales growth," she said.
The company forecasts no progress in the export situation next year, so it will have to depend on the domestic market.
Morgan's projection of sales growth of 15 per cent next year does not include China because the company has to wait and see the results of its attempt at market penetration there.
The company will also start selling leather bags in the Asian market after achieving its sales goals in Thailand.
"We have adjusted the price structure for bags to match our competitors. Our price was higher than theirs but when we reduced prices by 10 per cent, sales shot up 54 per cent, from 10-per-cent growth in previous years," she said.
The company will launch Cache Cache, a French apparel brand from its parent Morgan that is produced in China, for the mass market in Thailand.
The latest brand is priced lower than local brands, as in the company's experience, consumers are more cautious with their spending and will purchase those products that represent value for their money.
The company is also considering cutting women's apparel prices by 20 per cent after the Asean Free Trade Agreement (Afta) ends duties on imports and exports among Asean countries. The company now pays 30 per cent on imports of women's clothing.
However, Afta will also open the market to many Asean lingerie brands. Morgan has to quickly build brand awareness for its products especially lingerie because consumers are less familiar with Morgan's lingerie than its women's apparel.
Rail bosses crack down on strikers
Sackings begin as SRT tries to get trains going The head of the state railways has ordered the dismissal of six staff at Hat Yai station and two leading members of the railway union.
And a State Railway of Thailand source said yesterday more union members were likely to be sacked.
The eight were dismissed over the blockage of railway services in the lower South.
SRT governor Yutthana Thapcharoen issued the order for the dismissal of Thawatchai Boonvisoot, Soravut Porthongkam, Sarote Rakjan, Prachaniwat Buasri, Wirut Sakaekhum and Nitinai Chaiphume on Tuesday. The six work at Hat Yai station. None of them belong to the union and so could be fired straight away.
Mr Yutthana said it was clear the six were in the wrong. They had left their posts without good reason and acted in a way that disrupted normal rail services.
He said their actions carried a serious penalty and they could be punished without an inquiry. However, they could appeal the dismissal order within 15 days.
The six are also prohibited from entering Hat Yai railway station.
Two executive members of the railway union, Pinyo Ruenpet and Banjong Boonnet, will be taken to the Labour Court to hear an application to terminate their employment, Mr Yutthana said.
The two were seen speaking through loud hailers encouraging staff at Bang Sue to stop work on Tuesday, he said.
The SRT will also file a suit with the court demanding 70 million baht in damages from Mr Pinyo and Mr Banjong over the blockage. A court hearing into the case has been set for Nov 26.
The source said the SRT governor decided to go on the offensive starting with action against the six staff and two union members after getting the green light from the government.
The SRT was buoyed by the negative public reaction to the railway stoppage, which caused trouble for passengers, the source said.
The eight had connections with union leader Sawit Kaewwan, he said.
Another four Hat Yai rail staff are under investigation for their alleged involvement in the disruption of train services. If they are found guilty, they also will be punished, the SRT chief said.
Another six union committee members are suspected to be involved in the train blockage. They have yet to be investigated, Mr Yutthana said.
The source said the ultimate target of the SRT was Mr Sawit but the railway agency would check the union and public reaction first before taking action against other union members and leading staff over the stoppage.
Mr Sawit said the union would call a meeting to prepare to fight the court battle and insisted the union did nothing wrong.
He stressed the union's position that locomotives must be repaired to ensure safety. The Khao Tao derailing early this month was proof of that, he said.
Mr Sawit said SRT management had never taken responsibility but shifted the blame to train drivers.
He said the union would propose setting up a tripartite committee to find a long-term solution to the problem. The panel would be made up of members from the union, SRT executives and outsiders.
Meanwhile, all trains in the lower South will resume operations today after talks between Deputy Interior Minister Thaworn Senneam, SRT executives and the Hat Yai railway union. They reached an agreement to break the deadlock during talks in Hat Yai yesterday.
Mr Thaworn said the Hat Yai union had agreed with some conditions to resume rail services.
The union demanded locomotives be repaired and kept in working order, substitute railway staff from Bangkok leave so rail staff at Hat Yai could return to their jobs, and an impartial committee be set up to inspect the conditions of the locomotives and carriages before they are allowed to operate.
And a State Railway of Thailand source said yesterday more union members were likely to be sacked.
The eight were dismissed over the blockage of railway services in the lower South.
SRT governor Yutthana Thapcharoen issued the order for the dismissal of Thawatchai Boonvisoot, Soravut Porthongkam, Sarote Rakjan, Prachaniwat Buasri, Wirut Sakaekhum and Nitinai Chaiphume on Tuesday. The six work at Hat Yai station. None of them belong to the union and so could be fired straight away.
Mr Yutthana said it was clear the six were in the wrong. They had left their posts without good reason and acted in a way that disrupted normal rail services.
He said their actions carried a serious penalty and they could be punished without an inquiry. However, they could appeal the dismissal order within 15 days.
The six are also prohibited from entering Hat Yai railway station.
Two executive members of the railway union, Pinyo Ruenpet and Banjong Boonnet, will be taken to the Labour Court to hear an application to terminate their employment, Mr Yutthana said.
The two were seen speaking through loud hailers encouraging staff at Bang Sue to stop work on Tuesday, he said.
The SRT will also file a suit with the court demanding 70 million baht in damages from Mr Pinyo and Mr Banjong over the blockage. A court hearing into the case has been set for Nov 26.
The source said the SRT governor decided to go on the offensive starting with action against the six staff and two union members after getting the green light from the government.
The SRT was buoyed by the negative public reaction to the railway stoppage, which caused trouble for passengers, the source said.
The eight had connections with union leader Sawit Kaewwan, he said.
Another four Hat Yai rail staff are under investigation for their alleged involvement in the disruption of train services. If they are found guilty, they also will be punished, the SRT chief said.
Another six union committee members are suspected to be involved in the train blockage. They have yet to be investigated, Mr Yutthana said.
The source said the ultimate target of the SRT was Mr Sawit but the railway agency would check the union and public reaction first before taking action against other union members and leading staff over the stoppage.
Mr Sawit said the union would call a meeting to prepare to fight the court battle and insisted the union did nothing wrong.
He stressed the union's position that locomotives must be repaired to ensure safety. The Khao Tao derailing early this month was proof of that, he said.
Mr Sawit said SRT management had never taken responsibility but shifted the blame to train drivers.
He said the union would propose setting up a tripartite committee to find a long-term solution to the problem. The panel would be made up of members from the union, SRT executives and outsiders.
Meanwhile, all trains in the lower South will resume operations today after talks between Deputy Interior Minister Thaworn Senneam, SRT executives and the Hat Yai railway union. They reached an agreement to break the deadlock during talks in Hat Yai yesterday.
Mr Thaworn said the Hat Yai union had agreed with some conditions to resume rail services.
The union demanded locomotives be repaired and kept in working order, substitute railway staff from Bangkok leave so rail staff at Hat Yai could return to their jobs, and an impartial committee be set up to inspect the conditions of the locomotives and carriages before they are allowed to operate.
SRT to seek funds for infrastructure
State Railway of Thailand chairman Tawalyarat Onsira is planning to propose a five-year investment plan, worth nearly Bt80 billion, to the Transport Ministry soon.
The budget is for improving railway infrastructure.
It is believed the move will help reduce conflicts between SRT top management and the labour union as well as ensure the smooth running of services in the South.
Tawalyarat, who is also deputy permanent secretary to the Transport Ministry and chairman of a panel responsible for improving the SRT's infrastructure, revealed yesterday that of the Bt80 billion, Bt42 billion would be used to construct double-track rail routes.
In addition, about Bt17 billion would be spent on improving railways, sleepers, bridges, crossing points and signalling to ensure safety, while the remaining roughly Bt20 billion would be for improving locomotives, cargo carriages and passenger bogies.
"It is a five-year plan and is expected to be completed by 2014," Tawalyarat said.
In addition, he said there would be a 10-year railway development plan worth Bt708.86 billion for four high-speed rail projects. The high-speed trains, expected to run at 250 kilometres per hour, will be earmarked for the Bang Sue-Chiang Mai, Bang Sue-Nong Khai, Makkasan-Chanthaburi and Bang Sue-Padang Besar routes.
Tawalyarat said the private sector would be invited to invest in all projects and be granted operating concessions in return.
"Transport Minister Sophon Saram will propose this plan to investors in China who are interested in Thailand's railway," he added.
However, he said the SRT would continue with its plans |to procure additional loco-motives. Of the locomotives bought, 80 per cent will be |owned by the SRT, while the remainder will be part of a |joint venture with the private |sector. Initially, the authority expected to procure more 100 locomotives.
The budget is for improving railway infrastructure.
It is believed the move will help reduce conflicts between SRT top management and the labour union as well as ensure the smooth running of services in the South.
Tawalyarat, who is also deputy permanent secretary to the Transport Ministry and chairman of a panel responsible for improving the SRT's infrastructure, revealed yesterday that of the Bt80 billion, Bt42 billion would be used to construct double-track rail routes.
In addition, about Bt17 billion would be spent on improving railways, sleepers, bridges, crossing points and signalling to ensure safety, while the remaining roughly Bt20 billion would be for improving locomotives, cargo carriages and passenger bogies.
"It is a five-year plan and is expected to be completed by 2014," Tawalyarat said.
In addition, he said there would be a 10-year railway development plan worth Bt708.86 billion for four high-speed rail projects. The high-speed trains, expected to run at 250 kilometres per hour, will be earmarked for the Bang Sue-Chiang Mai, Bang Sue-Nong Khai, Makkasan-Chanthaburi and Bang Sue-Padang Besar routes.
Tawalyarat said the private sector would be invited to invest in all projects and be granted operating concessions in return.
"Transport Minister Sophon Saram will propose this plan to investors in China who are interested in Thailand's railway," he added.
However, he said the SRT would continue with its plans |to procure additional loco-motives. Of the locomotives bought, 80 per cent will be |owned by the SRT, while the remainder will be part of a |joint venture with the private |sector. Initially, the authority expected to procure more 100 locomotives.
SERVICE RESUMPTION ON TRACK DESPITE FIRING OF SIX WORKERS
The State Railway of Thailand yesterday evening fired six of its workers stationed at Hat Yai Junction for allegedly instigating a strike and disrupting train service, throwing into doubt the relaunch of normal services today.
The move followed a breakthrough in negotiations between protesting workers and management, which would have allowed all suspended southern trains to resume running today.
Deputy Interior Minister Thaworn Senneam expressed worry that the dismissal might prolong the problem, especially after it was announced after the agreement to break the stalemate was reached.
However, he would work further to end the dispute, as the Democrat Party and the prime minister assigned him to directly sort out the problem.
To punish any protesting worker, a committee should be set up to look into individual cases before a decision to penalise them is reached, he said.
Wirun Sakaekhum, head of the Hat Yaibased SRT labour unions, which staged the strike, said before he was sacked that the 10 union members marked for discharge would fight the decision in court because they did not violate SRT regulations.
The other five fired workers were Thawatchai Bunwisoot, Sorrawuth Phorthongkham, Saroj Janrak, Prachaniwat Buasri and Nitinai Chaiyaphum.
Thaworn had brokered the twohour talks at the Hat Yai Junction in Songkhla, where the worker walkout has paralysed operations since October 17.
Management agreed to six demands, including that all 11 defective locomotives pass basic safety tests, only local engineers operate local trains and SRT management promise in writing to take responsibility for any accidents.
Another one was that an independent committee be set up to inspect the safety features installed on locomotives.
A crucial condition insisted upon all along by the protesting workers - that they must not be punished for staging the strike - was not mentioned in the six conditions.
The suspended trains will do their normal daily trips and the entire operation will be fully restored by Saturday, Thaworn said before the six workers were expelled.
In the morning, Train No 463, one of many providing free service, had all eight cars packed with passengers on its way to Sungai Kolok.
Onboard were 10 police, double the regular guard, while 200 police and defence volunteers patrolled Hat Yai platforms to prevent a reoccurrence of confrontations between protesting workers and Bangkokbased replacement engineers that had happened on Tuesday.
Later in the afternoon, five longhaul trains bound for Bangkok - Nos 170, 172, 42, 38 and 36 - resumed service, but not every run.
Wirun said No 463's departure in the morning was made possible by a threepoint agreement between unionists and deputy SRT governor WirojTriamphongphan. These three conditions became part of the final agreement mediated by Thaworn.
Before the agreement was reached, 56 engineering cadets were readied to operate the suspended trains. Some of them served as crewmembers on No 463.
Democrat MP Akhom Engchuan had earlier hinted at organising local residents opposed to the suspension of train service to rally for an end to the strike.
"Initially I will course my efforts on the issue through parliamentary channels, otherwise it will look like we're interfering with the Transport Ministry, which is not under the supervision of the Democrat Party.
"And if that doesn't work, I will use negotiations with the SRT union. This process will not involve only MPs but also villagers. And I cannot guarantee that there won't be any violence involved by then," he said.
The strike "coincidentally moved along" with the activities of a certain political party, he said.
"I don't want to give the name, but I believe you media people are aware of what has happened," he said, without going into detail.
Thaworn said Akhom's statement would have no bearing on his agreement.
"All disputes and problems have been settled and sorted out," he said.
Local residents hailed the return of No 463 and the other five train trips, saying it was a good sign that their frequent travels would return to normal.
They complained about the high cost of going by bus and taxi and all the delays as well as the school closures caused by students missing classes.
The move followed a breakthrough in negotiations between protesting workers and management, which would have allowed all suspended southern trains to resume running today.
Deputy Interior Minister Thaworn Senneam expressed worry that the dismissal might prolong the problem, especially after it was announced after the agreement to break the stalemate was reached.
However, he would work further to end the dispute, as the Democrat Party and the prime minister assigned him to directly sort out the problem.
To punish any protesting worker, a committee should be set up to look into individual cases before a decision to penalise them is reached, he said.
Wirun Sakaekhum, head of the Hat Yaibased SRT labour unions, which staged the strike, said before he was sacked that the 10 union members marked for discharge would fight the decision in court because they did not violate SRT regulations.
The other five fired workers were Thawatchai Bunwisoot, Sorrawuth Phorthongkham, Saroj Janrak, Prachaniwat Buasri and Nitinai Chaiyaphum.
Thaworn had brokered the twohour talks at the Hat Yai Junction in Songkhla, where the worker walkout has paralysed operations since October 17.
Management agreed to six demands, including that all 11 defective locomotives pass basic safety tests, only local engineers operate local trains and SRT management promise in writing to take responsibility for any accidents.
Another one was that an independent committee be set up to inspect the safety features installed on locomotives.
A crucial condition insisted upon all along by the protesting workers - that they must not be punished for staging the strike - was not mentioned in the six conditions.
The suspended trains will do their normal daily trips and the entire operation will be fully restored by Saturday, Thaworn said before the six workers were expelled.
In the morning, Train No 463, one of many providing free service, had all eight cars packed with passengers on its way to Sungai Kolok.
Onboard were 10 police, double the regular guard, while 200 police and defence volunteers patrolled Hat Yai platforms to prevent a reoccurrence of confrontations between protesting workers and Bangkokbased replacement engineers that had happened on Tuesday.
Later in the afternoon, five longhaul trains bound for Bangkok - Nos 170, 172, 42, 38 and 36 - resumed service, but not every run.
Wirun said No 463's departure in the morning was made possible by a threepoint agreement between unionists and deputy SRT governor WirojTriamphongphan. These three conditions became part of the final agreement mediated by Thaworn.
Before the agreement was reached, 56 engineering cadets were readied to operate the suspended trains. Some of them served as crewmembers on No 463.
Democrat MP Akhom Engchuan had earlier hinted at organising local residents opposed to the suspension of train service to rally for an end to the strike.
"Initially I will course my efforts on the issue through parliamentary channels, otherwise it will look like we're interfering with the Transport Ministry, which is not under the supervision of the Democrat Party.
"And if that doesn't work, I will use negotiations with the SRT union. This process will not involve only MPs but also villagers. And I cannot guarantee that there won't be any violence involved by then," he said.
The strike "coincidentally moved along" with the activities of a certain political party, he said.
"I don't want to give the name, but I believe you media people are aware of what has happened," he said, without going into detail.
Thaworn said Akhom's statement would have no bearing on his agreement.
"All disputes and problems have been settled and sorted out," he said.
Local residents hailed the return of No 463 and the other five train trips, saying it was a good sign that their frequent travels would return to normal.
They complained about the high cost of going by bus and taxi and all the delays as well as the school closures caused by students missing classes.
Tuesday, October 27, 2009
Council gives ruling on Thaksin's rank
The Council of State believes the sentencing of ousted prime minister Thaksin Shinawatra to two years in jail is enough justification to strip him of his police rank and royal decorations.
The council ruling has been sent to the Cabinet Secretariat along with guidelines to strip Thaksin of his rank of police lieutenant colonel and the royal decorations bestowed on him.
The ruling came after the Royal Thai Police queried whether Thaksin's conviction was sufficient to strip him of his rank.
It claimed Thaksin was sentenced to prison for violating the rule on conflicts of interest under the anticorruption law. He was cleared of malfeasance charges under articles 152 and 157 of the Criminal Code.
The police's position was that the offence was political, and so might not be enough to warrant revoking his rank under police regulations.
The Council of State, the government's legal arm, yesterday said the prison sentence handed down by the Supreme Court's Criminal Division for Holders of Political Positions met all the conditions required to revoke Thaksin's rank and royal decorations.
As long as the jail sentence imposed on Thaksin was considered final, he should lose his rank regardless of the court in which he was tried.
The council cited PM's Office regulations on royal decorations which stipulate that a person can lose them if a jail sentence is considered final.
It said the police could only seek to revoke the royal decorations associated with Thaksin's police rank.
The Cabinet Secretariat or other agencies could seek to revoke the other decorations.
The council ruling has been sent to the Cabinet Secretariat along with guidelines to strip Thaksin of his rank of police lieutenant colonel and the royal decorations bestowed on him.
The ruling came after the Royal Thai Police queried whether Thaksin's conviction was sufficient to strip him of his rank.
It claimed Thaksin was sentenced to prison for violating the rule on conflicts of interest under the anticorruption law. He was cleared of malfeasance charges under articles 152 and 157 of the Criminal Code.
The police's position was that the offence was political, and so might not be enough to warrant revoking his rank under police regulations.
The Council of State, the government's legal arm, yesterday said the prison sentence handed down by the Supreme Court's Criminal Division for Holders of Political Positions met all the conditions required to revoke Thaksin's rank and royal decorations.
As long as the jail sentence imposed on Thaksin was considered final, he should lose his rank regardless of the court in which he was tried.
The council cited PM's Office regulations on royal decorations which stipulate that a person can lose them if a jail sentence is considered final.
It said the police could only seek to revoke the royal decorations associated with Thaksin's police rank.
The Cabinet Secretariat or other agencies could seek to revoke the other decorations.
Rice trading schemes pushed forward
The government is preparing to buy paddy from farmers starting early next month and will accelerate sales from its huge rice stocks through governmentto-government contracts to stabilise prices, according to Commerce Minister Porntiva Nakasai.
She said the ministry would start buying paddy for the 2009-10 main crop from Nov 2, initially in Phitsanulok,Kamphaeng Phet and Nonthaburi, using 20 billion baht from the Thai Khem Kaeng economic stimulus budget.Buying prices would be based on the government's reference prices set at 8,460 baht per tonne for paddy with 15% moisture.
In light of heavy rains during the last several weeks, local paddy prices have fallen to between 6,000 and 6,500 baht for paddy with moisture exceeding 30%.
However, exporters said the overall Thai rice prices were not all that bad,with the benchmark Thai white rice now around 14,800 baht per tonne freeon-board, or about 8,400 to 8,500 baht per tonne for paddy of 15% moisture.
According to Mrs Porntiva, the government plans to sell 950,000 tonnes of rice from its stocks through governmentto-government deals in the remaining two months of this year and would release another 1.77 million tonnes in 2010."Our strategy is to drain rice out of the country in a bid to lift domestic prices during the harvesting season,"she said.
The government is estimated to have the equivalent of six million tonnes of milled rice, bought from farmers in previous price intervention schemes."We plan to negotiate with several countries,including the Philippines, Malaysia, Indonesia and Iran," said Mrs Porntiva.
On Monday, the Philippines said it was in talks to buy at least 250,000 tonnes of rice from Thailand in a governmentto-government deal.
Thailand was expected to produce around 23.5 million tonnes of rice from its main crop.
The government had planned to end its rice-buying intervention in favour of a scheme under which it would subsidise farmers without buying grain itself.However, it has been forced to run both schemes in parallel in the face of farmers'protests.
Mrs Porntiva said to lift rice exports next year, the government planned closer partnerships with private exporters to negotiate with potential buyers including Nigeria, Angola, Libya and Algeria. As of Oct 26, Thailand had exported 7.065 million tonnes of rice worth $4.06 billion. Volume was down 20.7%with value dropping 25.9% from the same period last year.
She said the ministry would start buying paddy for the 2009-10 main crop from Nov 2, initially in Phitsanulok,Kamphaeng Phet and Nonthaburi, using 20 billion baht from the Thai Khem Kaeng economic stimulus budget.Buying prices would be based on the government's reference prices set at 8,460 baht per tonne for paddy with 15% moisture.
In light of heavy rains during the last several weeks, local paddy prices have fallen to between 6,000 and 6,500 baht for paddy with moisture exceeding 30%.
However, exporters said the overall Thai rice prices were not all that bad,with the benchmark Thai white rice now around 14,800 baht per tonne freeon-board, or about 8,400 to 8,500 baht per tonne for paddy of 15% moisture.
According to Mrs Porntiva, the government plans to sell 950,000 tonnes of rice from its stocks through governmentto-government deals in the remaining two months of this year and would release another 1.77 million tonnes in 2010."Our strategy is to drain rice out of the country in a bid to lift domestic prices during the harvesting season,"she said.
The government is estimated to have the equivalent of six million tonnes of milled rice, bought from farmers in previous price intervention schemes."We plan to negotiate with several countries,including the Philippines, Malaysia, Indonesia and Iran," said Mrs Porntiva.
On Monday, the Philippines said it was in talks to buy at least 250,000 tonnes of rice from Thailand in a governmentto-government deal.
Thailand was expected to produce around 23.5 million tonnes of rice from its main crop.
The government had planned to end its rice-buying intervention in favour of a scheme under which it would subsidise farmers without buying grain itself.However, it has been forced to run both schemes in parallel in the face of farmers'protests.
Mrs Porntiva said to lift rice exports next year, the government planned closer partnerships with private exporters to negotiate with potential buyers including Nigeria, Angola, Libya and Algeria. As of Oct 26, Thailand had exported 7.065 million tonnes of rice worth $4.06 billion. Volume was down 20.7%with value dropping 25.9% from the same period last year.
Rail staff accused of train sabotage
The State Railway of Thailand plans to sack 10 union members and is threatening legal action against them after a train was allegedly blocked from leaving Hat Yai by another train.
SRT executives considered the situation as dangerous as the first train had left the key southern station on the Songkhla to Narathiwat route yesterday.
SRT governor Yutthana Thapcharoen said railway management had decided the staff allegedly responsible would have to be fired for severe misconduct.
SRT union members at Hat Yai station have refused to operate train services to the deep South since Oct 16, citing health and safety concerns.
An SRT source said about 10 key union members were singled out for dismissal. They were accused of persuading railway workers in the South and the Central Plains to strike.
The source said the Hat Yai incident happened at 10.30am yesterday and involved the No.463 PhatthalungSungai Kolok service.
The train driver, who is from Bangkok, was forced to stop the locomotive about 300 metres from Hat Yai station when he saw the Padang Besar-Hat Yai train parked on the same track.
Union members at the station then surrounded his train and called on him to get down from the cabin.
The confrontation ended after an hour when more than 100 railway police arrived to escort the driver to safety.
Mr Yutthana blamed the Hat Yai staff for allowing the No.463 to run on the same track as the stationary Padang Besar-Hat Yai train.
A crash was only avoided because the driver was able to stop the train in time, he said.
Mr Yutthana said he had ordered a full investigation into the incident.
The driver, Saroj Suksamran, said he was given the green light to pull out of the station but rammed on the brakes when he noticed something wrong with a signal.
He said the SRT management ordered him to file a complaint with police against local union members.
He accused the union members of using another train to block his route and of tampering with a switch that could have derailed his train.
Wiroon Sakaekhum, head of the Hat Yai union, said the departing train almost collided with the other train because it jumped a red light that was switched on to show there was another train on the same track.
The next signal switch was not in the right position for the train to move out of the station and the train would have derailed if it had continued for another 50 metres,he said.
After the Hat Yai incident, SRT deputy governor Itthipol Praphawasit abruptly ended negotiations with SRT union president Sawit Kaeowan at the state enterprise's offices in Bangkok.
The SRT's management blamed the union of failing to cooperate and resume services.
Mr Sawit said the union was sticking to its demands that the SRT management ensure all trains are safe and properly maintained.
Transport Minister Sohpon Zarum said those involved in the Hat Yai rail blockage would be arrested.
The cabinet yesterday approved an SRT request to recruit 171 new train drivers and engineers to cope with a staff shortage.
The railway union blames substandard equipment and a shortage of drivers for a fatal train derailment in Prachuap Khiri Khan on Oct 5.
Members of the State Enterprise Relations Confederation yesterday urged Prime Minister Abhisit Vejjajiva to step in to solve the conflict between the railway union and the SRT management.
Railway union members yesterday filed a complaint with the senate committee on human rights, liberty and consumer protection.
The panel will discuss the complaint tomorrow.
SRT executives considered the situation as dangerous as the first train had left the key southern station on the Songkhla to Narathiwat route yesterday.
SRT governor Yutthana Thapcharoen said railway management had decided the staff allegedly responsible would have to be fired for severe misconduct.
SRT union members at Hat Yai station have refused to operate train services to the deep South since Oct 16, citing health and safety concerns.
An SRT source said about 10 key union members were singled out for dismissal. They were accused of persuading railway workers in the South and the Central Plains to strike.
The source said the Hat Yai incident happened at 10.30am yesterday and involved the No.463 PhatthalungSungai Kolok service.
The train driver, who is from Bangkok, was forced to stop the locomotive about 300 metres from Hat Yai station when he saw the Padang Besar-Hat Yai train parked on the same track.
Union members at the station then surrounded his train and called on him to get down from the cabin.
The confrontation ended after an hour when more than 100 railway police arrived to escort the driver to safety.
Mr Yutthana blamed the Hat Yai staff for allowing the No.463 to run on the same track as the stationary Padang Besar-Hat Yai train.
A crash was only avoided because the driver was able to stop the train in time, he said.
Mr Yutthana said he had ordered a full investigation into the incident.
The driver, Saroj Suksamran, said he was given the green light to pull out of the station but rammed on the brakes when he noticed something wrong with a signal.
He said the SRT management ordered him to file a complaint with police against local union members.
He accused the union members of using another train to block his route and of tampering with a switch that could have derailed his train.
Wiroon Sakaekhum, head of the Hat Yai union, said the departing train almost collided with the other train because it jumped a red light that was switched on to show there was another train on the same track.
The next signal switch was not in the right position for the train to move out of the station and the train would have derailed if it had continued for another 50 metres,he said.
After the Hat Yai incident, SRT deputy governor Itthipol Praphawasit abruptly ended negotiations with SRT union president Sawit Kaeowan at the state enterprise's offices in Bangkok.
The SRT's management blamed the union of failing to cooperate and resume services.
Mr Sawit said the union was sticking to its demands that the SRT management ensure all trains are safe and properly maintained.
Transport Minister Sohpon Zarum said those involved in the Hat Yai rail blockage would be arrested.
The cabinet yesterday approved an SRT request to recruit 171 new train drivers and engineers to cope with a staff shortage.
The railway union blames substandard equipment and a shortage of drivers for a fatal train derailment in Prachuap Khiri Khan on Oct 5.
Members of the State Enterprise Relations Confederation yesterday urged Prime Minister Abhisit Vejjajiva to step in to solve the conflict between the railway union and the SRT management.
Railway union members yesterday filed a complaint with the senate committee on human rights, liberty and consumer protection.
The panel will discuss the complaint tomorrow.
EXPORT SALES OF CHOCOLATE FEEL THE HEAT
Mrs Flowers, manufacturer and distributor of home-made chocolates, expects its export sales to be flat or even down this year.
Buyers in the US and Europe are delaying their orders during these tough economic times.
Marketing manager Taras Sudhikam said the economic slowdown had affected chocolate consumption, especially in the US and some European markets.
"This is a big concern, foreign buyers not ordering our chocolates due to the poor state of their economies. This has affected our exports, which are expected to be stagnant this year," he said.
Taras said exports normally accounted for 60-65 per cent of Mrs Flowers' sales revenue, with foreign buyers placing orders in May or June for local availability in October and November.
"But a lot of buyers are not placing orders this year until October and November, and it's quite difficult for us to deliver on time, due to our home-made system and principle of freshness," he said.
Taras expects next year's exports to be flat or up slightly growth.
He pointed out the company had achieved 80-90 per cent of its domestic sales target.
"We have two months left in the year to boost our domestic sales, and it's our peak season, with individuals and corporate customers purchasing chocolates as gifts for friends and customers for New Year's," he said.
Taras said that up to half of company sales were generated in the final two months of any given year.
"That will allow us to achieve full-year growth of 5-10 per cent in domestic sales this year," he said.
Mrs Flowers yesterday introduced its first-ever gift sets of chocolate and Thai snacks for the local market, targeted at individual and corporate customers alike. Prices range from Bt1,189 to Bt3,589.
The company expects to sell as many as 5,000 gift sets by year-end.
Mrs Flowers also announced a revamp of its business strategy to cope with the economic slowdown, which has affected overall chocolate consumption.
"We set up a new subsidiary earlier this year named King Arthur. It delivers chocolates for use as ingredients to corporate customers like ice-cream manufacturers and bakeries," said Taras.
He said the company also produced house-brand products for some retail clients, including Tops Supermarkets.
Buyers in the US and Europe are delaying their orders during these tough economic times.
Marketing manager Taras Sudhikam said the economic slowdown had affected chocolate consumption, especially in the US and some European markets.
"This is a big concern, foreign buyers not ordering our chocolates due to the poor state of their economies. This has affected our exports, which are expected to be stagnant this year," he said.
Taras said exports normally accounted for 60-65 per cent of Mrs Flowers' sales revenue, with foreign buyers placing orders in May or June for local availability in October and November.
"But a lot of buyers are not placing orders this year until October and November, and it's quite difficult for us to deliver on time, due to our home-made system and principle of freshness," he said.
Taras expects next year's exports to be flat or up slightly growth.
He pointed out the company had achieved 80-90 per cent of its domestic sales target.
"We have two months left in the year to boost our domestic sales, and it's our peak season, with individuals and corporate customers purchasing chocolates as gifts for friends and customers for New Year's," he said.
Taras said that up to half of company sales were generated in the final two months of any given year.
"That will allow us to achieve full-year growth of 5-10 per cent in domestic sales this year," he said.
Mrs Flowers yesterday introduced its first-ever gift sets of chocolate and Thai snacks for the local market, targeted at individual and corporate customers alike. Prices range from Bt1,189 to Bt3,589.
The company expects to sell as many as 5,000 gift sets by year-end.
Mrs Flowers also announced a revamp of its business strategy to cope with the economic slowdown, which has affected overall chocolate consumption.
"We set up a new subsidiary earlier this year named King Arthur. It delivers chocolates for use as ingredients to corporate customers like ice-cream manufacturers and bakeries," said Taras.
He said the company also produced house-brand products for some retail clients, including Tops Supermarkets.
Ministry gets prepared for second wave of influenza
The Public Health Ministry is bracing for a second round of type-A (H1N1)influenza attacks in coming weeks.
Reports of a second flu wave and a sharp jump in patients in the US and Mexico have prompted health authorities to issue an alert of a potential new strike as the weather cools and the new school term gets under way.
People attending crowded activities,such as the Loy Kratong festival on Monday, are urged to protect themselves from the virus.
"We have to carefully watch out for a flu outbreak over the next two to three weeks as 12 million students will return to school," said Kamnuan Ungchusak,a Public Health Ministry disease control expert.
"Also, the cooling weather and festivities enable the virus to stay in the environment longer and transmit to more people without proper protection."
Students were among the first group to contract the type-A H1N1 influenza when the first flu wave hit in late April.Thousands of schools in Bangkok were ordered closed for a week to contain the outbreak.
About 40% of schools in Bangkok and 20% of more than 30,000 schools under the Office of the Basic Education Commission reported flu cases during the first round of the flu, Dr Kamnuan Paijit: Hospitals said.ready and waiting The epidemiologist believed schools in rural areas were at greater risk this time because the flu virus had spread to local communities.
"It is worrying that local flu cases will increase rapidly if the new flu wave strikes," Dr Kamnuan said.
Permanent secretary for public health Paijit Warachit said he would call a meeting today of provincial public health chiefs and livestock officials in the lower North and upper central provinces on preventing H1N1, seasonal flu and bird flu outbreaks.
Health authorities are also working with medical schools and the Emergency Medical Institute of Thailand to build a network of emergency units to help cut mortality rates and ensure beds are available for critical patients.
There have been 182 deaths in Thailand from H1N1 as of last Saturday.
Hospitals are equipped to handle a possible surge of new patients from the second flu wave, Dr Paijit said.
Lessons learned during the peak period of July and August show that both outpatient and ICU wards became quickly overwhelmed.
An estimated 16,000 patients a day sought hospital treatment for flu-like illnesses during the peak period.
Government Pharmaceutical Organisation managing director Witit Artavatkun yesterday said it was possible the clinical trial of the type-A (H1N1) vaccine could be undertaken by mid-November as experts had almost completed studying the product's stability.
Reports of a second flu wave and a sharp jump in patients in the US and Mexico have prompted health authorities to issue an alert of a potential new strike as the weather cools and the new school term gets under way.
People attending crowded activities,such as the Loy Kratong festival on Monday, are urged to protect themselves from the virus.
"We have to carefully watch out for a flu outbreak over the next two to three weeks as 12 million students will return to school," said Kamnuan Ungchusak,a Public Health Ministry disease control expert.
"Also, the cooling weather and festivities enable the virus to stay in the environment longer and transmit to more people without proper protection."
Students were among the first group to contract the type-A H1N1 influenza when the first flu wave hit in late April.Thousands of schools in Bangkok were ordered closed for a week to contain the outbreak.
About 40% of schools in Bangkok and 20% of more than 30,000 schools under the Office of the Basic Education Commission reported flu cases during the first round of the flu, Dr Kamnuan Paijit: Hospitals said.ready and waiting The epidemiologist believed schools in rural areas were at greater risk this time because the flu virus had spread to local communities.
"It is worrying that local flu cases will increase rapidly if the new flu wave strikes," Dr Kamnuan said.
Permanent secretary for public health Paijit Warachit said he would call a meeting today of provincial public health chiefs and livestock officials in the lower North and upper central provinces on preventing H1N1, seasonal flu and bird flu outbreaks.
Health authorities are also working with medical schools and the Emergency Medical Institute of Thailand to build a network of emergency units to help cut mortality rates and ensure beds are available for critical patients.
There have been 182 deaths in Thailand from H1N1 as of last Saturday.
Hospitals are equipped to handle a possible surge of new patients from the second flu wave, Dr Paijit said.
Lessons learned during the peak period of July and August show that both outpatient and ICU wards became quickly overwhelmed.
An estimated 16,000 patients a day sought hospital treatment for flu-like illnesses during the peak period.
Government Pharmaceutical Organisation managing director Witit Artavatkun yesterday said it was possible the clinical trial of the type-A (H1N1) vaccine could be undertaken by mid-November as experts had almost completed studying the product's stability.
EVIDENCE OF CONTINUED RECOVERY
Thailand's economic recovery continues, with a rebound in domestic consumption, private investment and exports convincing official the economic contraction will be limited to only 3 per cent this year.
As a sign of recovering domestic demand and export markets, the Federation of Thai Industries, Automotive Industry Club yesterday also revealed vehicle output exceeded 100,000 units last month for the first time in a year. The 103,000 units produced were down 16 per cent year on year but up 22 per month on month.
Last month's automobile exports were also the highest in a year at 49,500 units, down 33 per cent year on year but up 14 per cent month on month. Their combined value of Bt23.8 billion was down 30 per cent year on year.
Finance Ministry spokesman Ekniti Nitithanprapas said gross domestic product was expected to show a drop of 3.5-4 per cent in the third quarter, against declines of 7.1 per cent and 4.9 per cent in the previous two quarters.
Several indicators predicted a smaller contraction - value-added tax, commercial-lorry sales, imports of capital goods and consumer procucts and exports, all of which revealed a rebound in domestic consumption, new investment and a recovery in exports. Export value is also expected to drop only 17.7 per cent year on year in the third quarter, to US$41.1 billion (Bt1.37 trillion), against a 23.5-per-cent decline in the first half, due to recovery in emerging markets like China and Vietnam.
"These figures are in line with Standard & Poor's estimates that despite huge public debts, the economic recovery continues. But S&P is concerned about policy continuity, particularly in the medium term," Ekniti said.
"If the red shirts resume meeting in late November and political tensions flare back up, it could slow further recovery in domestic consumption and investment and affect the continuity of government measures."
As a sign of recovering domestic demand and export markets, the Federation of Thai Industries, Automotive Industry Club yesterday also revealed vehicle output exceeded 100,000 units last month for the first time in a year. The 103,000 units produced were down 16 per cent year on year but up 22 per month on month.
Last month's automobile exports were also the highest in a year at 49,500 units, down 33 per cent year on year but up 14 per cent month on month. Their combined value of Bt23.8 billion was down 30 per cent year on year.
Finance Ministry spokesman Ekniti Nitithanprapas said gross domestic product was expected to show a drop of 3.5-4 per cent in the third quarter, against declines of 7.1 per cent and 4.9 per cent in the previous two quarters.
Several indicators predicted a smaller contraction - value-added tax, commercial-lorry sales, imports of capital goods and consumer procucts and exports, all of which revealed a rebound in domestic consumption, new investment and a recovery in exports. Export value is also expected to drop only 17.7 per cent year on year in the third quarter, to US$41.1 billion (Bt1.37 trillion), against a 23.5-per-cent decline in the first half, due to recovery in emerging markets like China and Vietnam.
"These figures are in line with Standard & Poor's estimates that despite huge public debts, the economic recovery continues. But S&P is concerned about policy continuity, particularly in the medium term," Ekniti said.
"If the red shirts resume meeting in late November and political tensions flare back up, it could slow further recovery in domestic consumption and investment and affect the continuity of government measures."
THAI AUTHORITIES CLOSE TO LAYING HANDS ON SAXENA
After more than a decade-long legal struggle, authorities now smell victory at hand in their bid to bring back bank fraud suspect Rakesh Saxena from Cananda to stand trial.
"We don't know yet what the ruling will be, but we're getting prepared to bring Saxena back to Thailand," National Police spokesman General Pongsapat Pongcharoen said yesterday.
In the morning, representatives from the Office of the Attorney-General, the National Police Office and the Foreign Ministry left for Vancouver with high hopes they would escort Saxena back on Friday after the Supreme Court there delivers its final decision tomorrow on Saxena's appeal against extradition.
Pongsapat said Saxena could arrive at Suvarnabhumi Airport Friday night.
Once back in Thailand, he will be held in custody at the Crime Suppression Bureau under tight security and 24-hour surveillance.
During his detention, he will be questioned in order to build up the case against him, with Pol General Pansiri Prapawat assigned as chief interrogator.
Public prosecutors will then take on the case and are expected to have him arraigned in Criminal Court.
Acting National Police chief Patheep Tanprasert held a half-hour staff meeting to discuss how to handle Saxena once he entered the country.
Thailand requested Saxena's extradition in 1996 to stand trial for fraud in connection with an US$88-million (Bt2.94 billion) loan that was never repaid. He was ordered to surrender for extradition in 2003, but in 2006 the order was suspended while Ottawa reconsidered the case in the wake of Thailand's military coup on September 19 of that year.
Saxena, an international financier, was accused of playing a key role, together with Krirk-kiat Jalichandra, in the collapse of Bangkok Bank of Commerce (BBC). Banking authorities had to contribute Bt100 billion to pay for the damage to BBC. Krirk-kiat has faced a dozen lawsuits over the BBC scandal and still goes to court to defend himself.
Saxena's extradition case has been running for so long that most political observers have written it off. Next July will see the statue of limitations expire in the case.
Saxena, who has been kept in house arrest at his luxury residence in Vancouver, has been arguing in court that his safety would be at risk if he were to be ruturned to Thailand.
Last year, a top British Columbia judge feared Canada might suffer a "black eye" if the "notorious extraditon case" passed tha cut-off date, said a report in an online Canadian newspaper.
If the longset-running extradition battle in Canadian history is not completed by next July, when the charges become statute-barred, he'll walk free, Canada.com said.
"Noting that the case has dragged on for 'years and years', BC Appeal Court justice Edward Chiasson said he was worried it would be an embarrassment to Canada if the July 2010 deakline passes and there was no resolution," Canada.com said.
A political source said the presence of Saxena back in Thailand would become an embarrassment for some key members of the coalition government, who allegedly benefited from the failure of BBC.
"It seems that the Democrats are trying to keep the Bhum Jai Thai Party at bay by trying to bring Saxena back to Thailand," the political source said.
"We don't know yet what the ruling will be, but we're getting prepared to bring Saxena back to Thailand," National Police spokesman General Pongsapat Pongcharoen said yesterday.
In the morning, representatives from the Office of the Attorney-General, the National Police Office and the Foreign Ministry left for Vancouver with high hopes they would escort Saxena back on Friday after the Supreme Court there delivers its final decision tomorrow on Saxena's appeal against extradition.
Pongsapat said Saxena could arrive at Suvarnabhumi Airport Friday night.
Once back in Thailand, he will be held in custody at the Crime Suppression Bureau under tight security and 24-hour surveillance.
During his detention, he will be questioned in order to build up the case against him, with Pol General Pansiri Prapawat assigned as chief interrogator.
Public prosecutors will then take on the case and are expected to have him arraigned in Criminal Court.
Acting National Police chief Patheep Tanprasert held a half-hour staff meeting to discuss how to handle Saxena once he entered the country.
Thailand requested Saxena's extradition in 1996 to stand trial for fraud in connection with an US$88-million (Bt2.94 billion) loan that was never repaid. He was ordered to surrender for extradition in 2003, but in 2006 the order was suspended while Ottawa reconsidered the case in the wake of Thailand's military coup on September 19 of that year.
Saxena, an international financier, was accused of playing a key role, together with Krirk-kiat Jalichandra, in the collapse of Bangkok Bank of Commerce (BBC). Banking authorities had to contribute Bt100 billion to pay for the damage to BBC. Krirk-kiat has faced a dozen lawsuits over the BBC scandal and still goes to court to defend himself.
Saxena's extradition case has been running for so long that most political observers have written it off. Next July will see the statue of limitations expire in the case.
Saxena, who has been kept in house arrest at his luxury residence in Vancouver, has been arguing in court that his safety would be at risk if he were to be ruturned to Thailand.
Last year, a top British Columbia judge feared Canada might suffer a "black eye" if the "notorious extraditon case" passed tha cut-off date, said a report in an online Canadian newspaper.
If the longset-running extradition battle in Canadian history is not completed by next July, when the charges become statute-barred, he'll walk free, Canada.com said.
"Noting that the case has dragged on for 'years and years', BC Appeal Court justice Edward Chiasson said he was worried it would be an embarrassment to Canada if the July 2010 deakline passes and there was no resolution," Canada.com said.
A political source said the presence of Saxena back in Thailand would become an embarrassment for some key members of the coalition government, who allegedly benefited from the failure of BBC.
"It seems that the Democrats are trying to keep the Bhum Jai Thai Party at bay by trying to bring Saxena back to Thailand," the political source said.
Monday, October 26, 2009
Unionists rolled as big wheels keep on turning
More than 100 armed railway police and security volunteers have released a train held at Hat Yai station by State Railway of Thailand unionists.
The train was the first of 14 locomotives which operate on lower southern services to resume operations.The services have been hampered by a 10-day strike.
A driver sent from Bangkok took the empty train from Hat Yai to Khok Pho in Pattani before returning again after being warned he might be breaking the law by driving the train.
Hat Yai railway union head Wiroon Sakaekhum said the driver had violated SRT regulations because he operated the train alone and had no experience on the track.
The regulations state drivers on the southern lines must have at least 10 years of experience and be accompanied by at least two support staff.
The SRT management resolved to take a forceful approach and legal action in a bid to resume the rail service after southern staff who are members of the SRT labour union halted services on Oct 16 and blocked the passage of trains which serve the lower South.
Armed railway police and security volunteers took 10 minutes at 3pm yesterday to free train No.175 from SRT union members.
Union members who had surrounded the trains at the station booed but did not resist attempts to get the train running.
In Bangkok, SRT governor Yutthana Thapcharoen yesterday said he had obtained a Songkhla provincial court order which prohibited anyone from blocking normal rail services.
He said copies of the order had been posted at railway stations nationwide.
He also issued an order demanding that 65 railway staff members who took leave from Hat Yai station return to work or risk dismissal.
He also placed 72 train drivers and engineers from Bangkok on standby in case the 65 employees refused to work.
"The court order is the green light for management to move and allows police to arrest those who block railway services," Mr Yutthana said.
"SRT staff must follow the orders of the management. If they resist the order intentionally to damage the organisation,they can face the harshest punishment,which is expulsion."
The SRT governor said 65 union members had taken leave and refused to operate trains, claiming the vehicles were not well maintained.
As all 14 lower southern trains later passed checks, the union members returned to work in Hat Yai but yesterday continued to refuse to drive the trains,claiming they were worried about safety along the tracks to the insurgency-torn far South.
The governor said police and soldiers had confirmed protection for the trains,so the safety claim was irrational. Besides, 12 locomotives running in the South were bullet-proof, Mr Yutthana said.
Prime Minister Abhisit Vejjajiva yesterday said rail workers who left their duties without a good reason would be held responsible for the halted public service.
The train was the first of 14 locomotives which operate on lower southern services to resume operations.The services have been hampered by a 10-day strike.
A driver sent from Bangkok took the empty train from Hat Yai to Khok Pho in Pattani before returning again after being warned he might be breaking the law by driving the train.
Hat Yai railway union head Wiroon Sakaekhum said the driver had violated SRT regulations because he operated the train alone and had no experience on the track.
The regulations state drivers on the southern lines must have at least 10 years of experience and be accompanied by at least two support staff.
The SRT management resolved to take a forceful approach and legal action in a bid to resume the rail service after southern staff who are members of the SRT labour union halted services on Oct 16 and blocked the passage of trains which serve the lower South.
Armed railway police and security volunteers took 10 minutes at 3pm yesterday to free train No.175 from SRT union members.
Union members who had surrounded the trains at the station booed but did not resist attempts to get the train running.
In Bangkok, SRT governor Yutthana Thapcharoen yesterday said he had obtained a Songkhla provincial court order which prohibited anyone from blocking normal rail services.
He said copies of the order had been posted at railway stations nationwide.
He also issued an order demanding that 65 railway staff members who took leave from Hat Yai station return to work or risk dismissal.
He also placed 72 train drivers and engineers from Bangkok on standby in case the 65 employees refused to work.
"The court order is the green light for management to move and allows police to arrest those who block railway services," Mr Yutthana said.
"SRT staff must follow the orders of the management. If they resist the order intentionally to damage the organisation,they can face the harshest punishment,which is expulsion."
The SRT governor said 65 union members had taken leave and refused to operate trains, claiming the vehicles were not well maintained.
As all 14 lower southern trains later passed checks, the union members returned to work in Hat Yai but yesterday continued to refuse to drive the trains,claiming they were worried about safety along the tracks to the insurgency-torn far South.
The governor said police and soldiers had confirmed protection for the trains,so the safety claim was irrational. Besides, 12 locomotives running in the South were bullet-proof, Mr Yutthana said.
Prime Minister Abhisit Vejjajiva yesterday said rail workers who left their duties without a good reason would be held responsible for the halted public service.
Wood-fuelled plant set for operation
Thailand's first wood-fired power plant is expected to start operations early next year as part of the government's policy to promote alternative energy sources, said the Energy Policy and Planning Office.
A Plus Co, wholly owned by the Thammarak Niwet Foundation, will operate the 1.5-megawatt station, said EPPO secretary-general Viraphol Jirapraditkul.
The wood-fired plant is a pilot project supported by the EPPO and Suranaree University of Technology (SUT).
There are a number of suitable fastgrowing trees that act as carbon sinks while being farmed that can be used as clean energy sources once harvested.
There are three fast-growing tree varieties - acacia, acacia mangium and leucaena - that are commercially viable for use in Thailand, a SUT study found.
A Plus established a 1,000-rai leucaena plantation to supply its plant with fuel.The firms plans to increase the plot size by another 2,000 rai next year.
The EPPO and the Energy Ministry supported the project yesterday by providing it with one million leucaena trees for the plantation.
Leucaena is a fast-growing nitrogenfixing tree with many uses that grows well in tropical conditions. It removes nitrogen gas from the air and make its usable for plants and animals.
A Plus's power plant will be Asia's second wood-fired power plant, following the launch of a similar project in India.
The cost of producing power at the wood-fired plant is 1.60 baht per kilowatt hour (unit), slightly higher than 1.25 baht per unit at a coal-fired plant.
Thai energy policymakers hope the fuel-wood plantations would help reduce both greenhouse gases and coal-fired power production, as well as slowing the pace of deforestation.
"As the government is promoting biomass and biogas, we might succeed in reducing the use of mainstream fuel,but we deforestation has increased as farmers tend to cut down forests to plant trees that can be used as fuel," said Mr Viraphol.
The EPPO offers an adder rate of 30-50 satang per unit on top of the unit cost of producing power from renewable fuels,which allows power producers to sell such energy to the Electricity Generating Authority of Thailand at a higher rate.
However, the EPPO is considering further increasing the adder rate for fast growing fuel-woods to encourage investment in wood-fired power, said Mr Viraphol.
"The wood-fired power project not only reduces deforestation but it will not reduce the area used for food crops,"said Energy Minister Wannarat Channukul. Using fast-growing trees for fuel will help Thailand achieve its target for renewable energy to account for 20% of local power production by 2023.
Policymakers are pushing for the use of fuel-wood due to a severe shortage in other biomass resources, such as rice husks, corn waste and chipped rubber wood, said Weerachai Arjharn, chairman of SUT's Center of Excellence in Biomass.
The Natural Resources and Environment Ministry plans to plant fuel-wood in deforested areas. It plans to increase the current 37,000 rai of fuel-wood plantations to 50,000 rai in the near future, he said.
"If we turn deforested areas into fuelwood plantations, we could have 300MW of wood-fired power capacity," he said.
TPI Polene and Mitr Phol Group have also announced plans to start growing leucaena trees near their production plants so they can use the fuel-wood for future power production.
A Plus Co, wholly owned by the Thammarak Niwet Foundation, will operate the 1.5-megawatt station, said EPPO secretary-general Viraphol Jirapraditkul.
The wood-fired plant is a pilot project supported by the EPPO and Suranaree University of Technology (SUT).
There are a number of suitable fastgrowing trees that act as carbon sinks while being farmed that can be used as clean energy sources once harvested.
There are three fast-growing tree varieties - acacia, acacia mangium and leucaena - that are commercially viable for use in Thailand, a SUT study found.
A Plus established a 1,000-rai leucaena plantation to supply its plant with fuel.The firms plans to increase the plot size by another 2,000 rai next year.
The EPPO and the Energy Ministry supported the project yesterday by providing it with one million leucaena trees for the plantation.
Leucaena is a fast-growing nitrogenfixing tree with many uses that grows well in tropical conditions. It removes nitrogen gas from the air and make its usable for plants and animals.
A Plus's power plant will be Asia's second wood-fired power plant, following the launch of a similar project in India.
The cost of producing power at the wood-fired plant is 1.60 baht per kilowatt hour (unit), slightly higher than 1.25 baht per unit at a coal-fired plant.
Thai energy policymakers hope the fuel-wood plantations would help reduce both greenhouse gases and coal-fired power production, as well as slowing the pace of deforestation.
"As the government is promoting biomass and biogas, we might succeed in reducing the use of mainstream fuel,but we deforestation has increased as farmers tend to cut down forests to plant trees that can be used as fuel," said Mr Viraphol.
The EPPO offers an adder rate of 30-50 satang per unit on top of the unit cost of producing power from renewable fuels,which allows power producers to sell such energy to the Electricity Generating Authority of Thailand at a higher rate.
However, the EPPO is considering further increasing the adder rate for fast growing fuel-woods to encourage investment in wood-fired power, said Mr Viraphol.
"The wood-fired power project not only reduces deforestation but it will not reduce the area used for food crops,"said Energy Minister Wannarat Channukul. Using fast-growing trees for fuel will help Thailand achieve its target for renewable energy to account for 20% of local power production by 2023.
Policymakers are pushing for the use of fuel-wood due to a severe shortage in other biomass resources, such as rice husks, corn waste and chipped rubber wood, said Weerachai Arjharn, chairman of SUT's Center of Excellence in Biomass.
The Natural Resources and Environment Ministry plans to plant fuel-wood in deforested areas. It plans to increase the current 37,000 rai of fuel-wood plantations to 50,000 rai in the near future, he said.
"If we turn deforested areas into fuelwood plantations, we could have 300MW of wood-fired power capacity," he said.
TPI Polene and Mitr Phol Group have also announced plans to start growing leucaena trees near their production plants so they can use the fuel-wood for future power production.
King may "leave hospital soon"
Her Royal Highness Princess Chulabhorn says His Majesty the King will be discharged from hospital soon.
"His Majesty can now rise from the bed by himself and can stand with the aid of a walker," Princess Chulabhorn told an audience of Thai people in Italy yesterday."I think His Majesty will leave hospital soon."
The Princess's remarks were televised on the Television Pool of Thailand.
She said it would take a while for the King to be able to walk. His Majesty is now receiving physical therapy at Siriraj Hospital.
"His Majesty is very resolute and determined to undergo physical therapy regularly, many times a day," the Princess said.
She said Her Majesty the Queen was constantly at the King's bedside and HRH Princess Maha Chakri Sirindhorn also spent her nights at the hospital.
"We're trying to find ways to make His Majesty laugh by telling him jokes, bringing comedy movies for him to watch and playing music for him. We're trying to keep His Majesty entertained."
"His Majesty can now rise from the bed by himself and can stand with the aid of a walker," Princess Chulabhorn told an audience of Thai people in Italy yesterday."I think His Majesty will leave hospital soon."
The Princess's remarks were televised on the Television Pool of Thailand.
She said it would take a while for the King to be able to walk. His Majesty is now receiving physical therapy at Siriraj Hospital.
"His Majesty is very resolute and determined to undergo physical therapy regularly, many times a day," the Princess said.
She said Her Majesty the Queen was constantly at the King's bedside and HRH Princess Maha Chakri Sirindhorn also spent her nights at the hospital.
"We're trying to find ways to make His Majesty laugh by telling him jokes, bringing comedy movies for him to watch and playing music for him. We're trying to keep His Majesty entertained."
LG makes Thailand LED TV base
The South Korean electronics giant LG has chosen Thailand as the first Asean production base for its latest range of televisions.
The company will spend about 200 million baht next year on molds, a clean room and other facilities at its Rayong factory to produce the LED and LCD sets locally, said Heegol Lee, general marketing manager for home entertainment at LG Electronics (Thailand) Co.
Exports will account for about 25% of total output. The Thai-made products will initially be shipped to Laos, Cambodia and Burma.
Another 340 million baht will be spent locally next year on promoting LG televisions, with a focus on LCD sets.
Overall demand for the brand's televisions in Thailand this year is estimated at about 3.2 million sets, or 32 billion baht, said Alongkorn Chujit, deputy managing director of LG Electronics (Thailand). LCD sets account for about one million sets, or 19 billion baht, followed by 65,000 plasma sets worth 23 billion baht, with other technologies accounting for the remaining 11 billion baht.
Overall demand for televisions shrank by 4.3% over the first eight months of the year. But demand for plasma TVs grew by 40% in the period and the LCD segment surged by 80%, while demand for conventional and flat-screen sets slid.
Sales of LG LCD sets increased by 80% over the period.
LED units currently account for just 2% of sales, but this is forecast to rise to 20% next year.
The company will spend 80 million baht promoting LED and LCD products,said managing director Hyun Woo Lee.
The new LED TV should lift the company's market share of the LCD TV segment to 25% by the year-end, up from 21% last year. The company aims to sell 3,000 units over the next three months.
The two new products in the LG Live Borderless TV range are priced at 32,990 and 109,990 baht.
It expects overall sales this year will grow by 15% to 15 billion baht.
The company will spend about 200 million baht next year on molds, a clean room and other facilities at its Rayong factory to produce the LED and LCD sets locally, said Heegol Lee, general marketing manager for home entertainment at LG Electronics (Thailand) Co.
Exports will account for about 25% of total output. The Thai-made products will initially be shipped to Laos, Cambodia and Burma.
Another 340 million baht will be spent locally next year on promoting LG televisions, with a focus on LCD sets.
Overall demand for the brand's televisions in Thailand this year is estimated at about 3.2 million sets, or 32 billion baht, said Alongkorn Chujit, deputy managing director of LG Electronics (Thailand). LCD sets account for about one million sets, or 19 billion baht, followed by 65,000 plasma sets worth 23 billion baht, with other technologies accounting for the remaining 11 billion baht.
Overall demand for televisions shrank by 4.3% over the first eight months of the year. But demand for plasma TVs grew by 40% in the period and the LCD segment surged by 80%, while demand for conventional and flat-screen sets slid.
Sales of LG LCD sets increased by 80% over the period.
LED units currently account for just 2% of sales, but this is forecast to rise to 20% next year.
The company will spend 80 million baht promoting LED and LCD products,said managing director Hyun Woo Lee.
The new LED TV should lift the company's market share of the LCD TV segment to 25% by the year-end, up from 21% last year. The company aims to sell 3,000 units over the next three months.
The two new products in the LG Live Borderless TV range are priced at 32,990 and 109,990 baht.
It expects overall sales this year will grow by 15% to 15 billion baht.
Chavalit draws govt ire
Puea Thai Party chairman Chavalit Yongchaiyudh has sparked a furious backlash from the government by insisting he will embark on trips to Burma and Malaysia in the wake of his remarks about ousted prime minister Thaksin Shinawatra being welcome "any time"in Cambodia.
The government, which insists Gen Chavalit discredited the Thai administration by his visit with Cambodian Prime Minister Hun Sen, has made it clear the opposition party politician should not meddle in diplomatic affairs.
Prime Minister Abhisit Vejjajiva and Foreign Minister Kasit Piromya yesterday asked Gen Chavalit to put the national interest before personal benefits ahead of his plans to visit other countries.
The government had no authority to block his travel plans but it would not succumb to pressure from other countries as a result of his visits, the prime minister said. Gen Chavalit will visit the lower South on Nov 3 followed by unscheduled trips to Malaysia and Burma, his close aide, Lt Gen Piratch Swamiwas, said yesterday.
Gen Chavalit's first foreign trip after assuming the chairmanship of the opposition party was to Cambodia last Wednesday. Cambodian Prime Minister Hun Sen told him he welcomed Thaksin to Cambodia.
Hun Sen also said on Friday after coming to Thailand for the Asean summit that the Cambodian government would not hand over Thaksin if Thailand sought his extradition.
Mr Abhisit responded by asking Hun Sen to decide between personal relations and bilateral benefits with Thailand.
Deputy Prime Minister Suthep Thaugsuban met Hun Sen on Saturday to discuss issues involving Thaksin.
Hun Sen promised to stop saying anything that might damage Thailand,Mr Suthep told reporters yesterday in Cha-am district in Phetchaburi.
Mr Kasit also sent a stronger message to Gen Chavalit in his bid to have the Puea Thai chairman reconsider his diplomatic strategy.
"You should ask Gen Chavalit whether his visits to neighbouring countries will benefit Thailand," the foreign minister told reporters."He should ask himself about what he is doing. Is it serving somebody?"
After the talks on Saturday between Mr Suthep and the Cambodian leader,the Foreign Ministry will submit evidence to Phnom Penh regarding the legal action taken against Thaksin.
It would be "factual" regarding the legal process the government was taking on the ousted prime minister, the foreign minister said.
Mr Kasit said he hoped that after the formal explanation, there would be no conflict between the two countries over Thaksin.
Lt Gen Piratch shrugged off the government's criticism and insisted Gen Chavalit had no plan to scrap his visits to Burma and Malaysia.
"He will meet leaders and will criticise no one," the aide said."What Gen Chavalit is doing is not for anybody in particular. He used to give suggestions to the government but the government never listened to him."
Gen Chavalit said last week he would use his personal connections with leaders of neighbouring countries to clear their misunderstandings about Thailand.
He claimed the foreign policy under the Democrat-led government had caused strains.
The Cambodian prime minister's remark favouring Thaksin continued to upset a group of 40 senators who urged the government take a tougher diplomatic line on Cambodia.
HUN SEN FACTOR
How Bangkokians see recent comments by Cambodian Prime Minister Hun Sen on ousted premier Thaksin Shinawatra affecting bilateral ties:
More 7 1% strained relations Uncertain 23% No effect 6% *Poll conducted on Friday and Saturday among 1,847 respondents in Greater Bangkok Source: Rajabhat Suan Dusit Poll
The government, which insists Gen Chavalit discredited the Thai administration by his visit with Cambodian Prime Minister Hun Sen, has made it clear the opposition party politician should not meddle in diplomatic affairs.
Prime Minister Abhisit Vejjajiva and Foreign Minister Kasit Piromya yesterday asked Gen Chavalit to put the national interest before personal benefits ahead of his plans to visit other countries.
The government had no authority to block his travel plans but it would not succumb to pressure from other countries as a result of his visits, the prime minister said. Gen Chavalit will visit the lower South on Nov 3 followed by unscheduled trips to Malaysia and Burma, his close aide, Lt Gen Piratch Swamiwas, said yesterday.
Gen Chavalit's first foreign trip after assuming the chairmanship of the opposition party was to Cambodia last Wednesday. Cambodian Prime Minister Hun Sen told him he welcomed Thaksin to Cambodia.
Hun Sen also said on Friday after coming to Thailand for the Asean summit that the Cambodian government would not hand over Thaksin if Thailand sought his extradition.
Mr Abhisit responded by asking Hun Sen to decide between personal relations and bilateral benefits with Thailand.
Deputy Prime Minister Suthep Thaugsuban met Hun Sen on Saturday to discuss issues involving Thaksin.
Hun Sen promised to stop saying anything that might damage Thailand,Mr Suthep told reporters yesterday in Cha-am district in Phetchaburi.
Mr Kasit also sent a stronger message to Gen Chavalit in his bid to have the Puea Thai chairman reconsider his diplomatic strategy.
"You should ask Gen Chavalit whether his visits to neighbouring countries will benefit Thailand," the foreign minister told reporters."He should ask himself about what he is doing. Is it serving somebody?"
After the talks on Saturday between Mr Suthep and the Cambodian leader,the Foreign Ministry will submit evidence to Phnom Penh regarding the legal action taken against Thaksin.
It would be "factual" regarding the legal process the government was taking on the ousted prime minister, the foreign minister said.
Mr Kasit said he hoped that after the formal explanation, there would be no conflict between the two countries over Thaksin.
Lt Gen Piratch shrugged off the government's criticism and insisted Gen Chavalit had no plan to scrap his visits to Burma and Malaysia.
"He will meet leaders and will criticise no one," the aide said."What Gen Chavalit is doing is not for anybody in particular. He used to give suggestions to the government but the government never listened to him."
Gen Chavalit said last week he would use his personal connections with leaders of neighbouring countries to clear their misunderstandings about Thailand.
He claimed the foreign policy under the Democrat-led government had caused strains.
The Cambodian prime minister's remark favouring Thaksin continued to upset a group of 40 senators who urged the government take a tougher diplomatic line on Cambodia.
HUN SEN FACTOR
How Bangkokians see recent comments by Cambodian Prime Minister Hun Sen on ousted premier Thaksin Shinawatra affecting bilateral ties:
More 7 1% strained relations Uncertain 23% No effect 6% *Poll conducted on Friday and Saturday among 1,847 respondents in Greater Bangkok Source: Rajabhat Suan Dusit Poll
HM recovering well
His Majesty the King was recovering sufficiently from his illness to be likely able to leave Siriraj Hospital soon, one of his daughters said yesterday.
"His Majesty has already got out of his hospital bed and walked around by himself," HRH Princess Chulabhorn Valayalaksana said.
Since entering Siriraj on September 19, His Majesty appeared in public for the first time last Friday to the delight of his loyal subjects across the country.
"His Majesty has already got out of his hospital bed and walked around by himself," HRH Princess Chulabhorn Valayalaksana said.
Since entering Siriraj on September 19, His Majesty appeared in public for the first time last Friday to the delight of his loyal subjects across the country.
Firms see Asean as second base
Leading companies operating both in Asean and outside the region have eyed the regional grouping as a second base for their investment next to their homeland, thanks to the area's strength not only in manufacturing but also service and investment.
At an Asean Business Forum seminar titled "Doing Business in Asean", Toyota Motor Asia Pacific Engineering and Manufacturing president Mitsuhiro Sonoda said his company considered Asean as its second mother country and an export base for alternative-energy vehicles.
"The region contributes more in developing Asean business and supports affiliated companies in other regions to ensure that Southeast Asia can be a great base for production, engineering and human-resources management to serve business growth," said Sonoda.
He described Asean as a strong export base for alternative-energy vehicles and a new energy-supply base rich in resources and technology development. However, some barriers have hampered it from serving as a second investment centre for Toyota, including national schemes to promote the auto industry.
Asean member states on their own may have limitations on the availability of capable second- and third-tier suppliers. To achieve real localisation, they must further develop suppliers' capabilities and set up a regional alternative-fuel policy, said Sonoda.
Anon Sirisaengtaksin, chief executive officer of PTT Exploration and Production, said Asean would be a new emerging destination as the company's production base for serving business growth in the region. "As car factories or other service industries have expanded their business in the region, the firm must also comply with other industries in order to serve those businesses' growth," he said.
Aloke Lohia, chairman of the executive committee of Indorama Polymers, said Asean's economic integration would make the region more attractive for foreign direct investment (FDI)
"Business sectors are looking forward to integration as it will create greater opportunity for sustainable business growth," Lohia said.
He said that to accomplish the goal of an Asean Economic Community (AEC), the region must have a mindset focused more on innovation and have strategic policies to draw more FDI into the region.
William Heinecke, CEO of Minor International, said the region has high potential as a base for service and tourism businesses. With 580 million people, it is rich in natural resources and has high capability in service business development. But Heinecke said the lack of cooperation between agencies and the plethora of red tape had hindered movement toward the AEC, and that could affect Asean's FDI attractiveness.
At an Asean Business Forum seminar titled "Doing Business in Asean", Toyota Motor Asia Pacific Engineering and Manufacturing president Mitsuhiro Sonoda said his company considered Asean as its second mother country and an export base for alternative-energy vehicles.
"The region contributes more in developing Asean business and supports affiliated companies in other regions to ensure that Southeast Asia can be a great base for production, engineering and human-resources management to serve business growth," said Sonoda.
He described Asean as a strong export base for alternative-energy vehicles and a new energy-supply base rich in resources and technology development. However, some barriers have hampered it from serving as a second investment centre for Toyota, including national schemes to promote the auto industry.
Asean member states on their own may have limitations on the availability of capable second- and third-tier suppliers. To achieve real localisation, they must further develop suppliers' capabilities and set up a regional alternative-fuel policy, said Sonoda.
Anon Sirisaengtaksin, chief executive officer of PTT Exploration and Production, said Asean would be a new emerging destination as the company's production base for serving business growth in the region. "As car factories or other service industries have expanded their business in the region, the firm must also comply with other industries in order to serve those businesses' growth," he said.
Aloke Lohia, chairman of the executive committee of Indorama Polymers, said Asean's economic integration would make the region more attractive for foreign direct investment (FDI)
"Business sectors are looking forward to integration as it will create greater opportunity for sustainable business growth," Lohia said.
He said that to accomplish the goal of an Asean Economic Community (AEC), the region must have a mindset focused more on innovation and have strategic policies to draw more FDI into the region.
William Heinecke, CEO of Minor International, said the region has high potential as a base for service and tourism businesses. With 580 million people, it is rich in natural resources and has high capability in service business development. But Heinecke said the lack of cooperation between agencies and the plethora of red tape had hindered movement toward the AEC, and that could affect Asean's FDI attractiveness.
PROBE URGED INTO RUMOUR-MONGERS
Senator Somchai Sawangkarn yesterday pressured the government to launch an investigation into four groups of people suspected of spreading the rumours about His Majesty the King's health, which led to a recent sell-off of shares in the stock market.
Somchai said the attack was planned in a series, starting in June, when a Thai-Vietnamese reporter at Bloomberg wrote an article on the issue. While the article was rerun, more such articles appeared in the foreign media this month when the red-shirts staged a rally and activist Ji Ungpakorn released a written piece. The government must file charges against those behind the rumours and get the Anti-Money Laundering Commission (AMLO) to chase the money trail and find the beneficiaries, he added.
"It violated the security laws and the government needs to arrest the culprits. Never again should the institution be used to crash the stock market," he said. He also pointed a finger at some university lecturers who were in-volved in the October political demonstrations in 1973 and 1976, political activists opposed to the |constitutional monarchy, those who want to discredit the present government and attain a House dissolution, and those who are seeking funding for their political campaigns.
The process also involved some investors with political connections with the initials Por, Yor, Wor, Sor and Phor, he said, who had worked with stock analysts in dictating the stock market. He said AMLO's help was necessary to support the Department |of Special Investigation and the Securities and Exchange Commis-sion (SEC) probes.
Finance Minister Korn Chatika-vanij echoed Somchai's concerns that inauspicious rumours were having a negative psychological impact. He said the SEC and the Stock Exchange of Thailand had been negligent in finding out the source of the rumours. Both have been reprimanded for insisting on probing only rumours involving listed companies, as stock prices also moved on other news.
Somchai said the attack was planned in a series, starting in June, when a Thai-Vietnamese reporter at Bloomberg wrote an article on the issue. While the article was rerun, more such articles appeared in the foreign media this month when the red-shirts staged a rally and activist Ji Ungpakorn released a written piece. The government must file charges against those behind the rumours and get the Anti-Money Laundering Commission (AMLO) to chase the money trail and find the beneficiaries, he added.
"It violated the security laws and the government needs to arrest the culprits. Never again should the institution be used to crash the stock market," he said. He also pointed a finger at some university lecturers who were in-volved in the October political demonstrations in 1973 and 1976, political activists opposed to the |constitutional monarchy, those who want to discredit the present government and attain a House dissolution, and those who are seeking funding for their political campaigns.
The process also involved some investors with political connections with the initials Por, Yor, Wor, Sor and Phor, he said, who had worked with stock analysts in dictating the stock market. He said AMLO's help was necessary to support the Department |of Special Investigation and the Securities and Exchange Commis-sion (SEC) probes.
Finance Minister Korn Chatika-vanij echoed Somchai's concerns that inauspicious rumours were having a negative psychological impact. He said the SEC and the Stock Exchange of Thailand had been negligent in finding out the source of the rumours. Both have been reprimanded for insisting on probing only rumours involving listed companies, as stock prices also moved on other news.
Ball in your court, PM tells Hun Sen
Good relations with Cambodia are up on Phnom Penh, according to Prime Minister Abhisit Vejjajiva, who said yesterday that the "ball is now in Cambodia's court".
His remark suggests it's up to Prime Minister Hun Sen to strengthen bilateral ties or allow them to suffer after the verbal spat between him and Abhiisit over the weekend.
Speaking to Nation Multimedia Group's editor-in-chief Suthichai Yoon on the World Pulse TV show - being aired nationwide this evening, Abhisit said there would be no diplomatic protest or recalling of Thai ambassadors at this point in time.
Diplomatic relations went into a tailspin last week after Hun Sen said his "old friend" Thaksin Shinawatra, the former Thai PM, would be welcome to live in Cambodia.
Hun Sen said he would not extradite Thaksin to face prison terms in Thailand because he considered his crimes were political in nature. He later said he would make the fugitive premier an economic adviser.
Hun Sen made the statement shortly after arriving in Thailand to attend the 15th Asean Summit in Cha-am over the weekend.
Abhisit said Hun Sen needed to hear all the facts before any conclusion could be reached. The Cambodian needed to know what laws Thaksin had violated and then decide as to whether the former PM should be sent back to Thailand, if and when he arrives in
Cambodia.
Abhisit dismissed suggestion that Hun Sen's remarks spoiled the Asean Summit, hosted by Thailand in Hua Hin and Cha-am over the past weekend. The PM said he was satisfied with the outcome of the summit.
No other leaders at the summit asked about Hun Sen's statement, Abhisit said.
When asked about Chavalit Yongchaiyudh's trip to Phnom Penh, which sparked Hun Sen's remarks, Abhisit suggested the Pheu Thai politician needed to re-evaluate whether his actions had hurt or helped relations with Cambodia.
Abhisit said he was willing to talk to Thaksin about national reconciliation provided the fugitive premier returned to the country and accepted findings from the country's justice system, which had convicted him of fraud and corruption.
"If he is not willing to abide by our law then what's the use of talking to him?" he asked.
His remark suggests it's up to Prime Minister Hun Sen to strengthen bilateral ties or allow them to suffer after the verbal spat between him and Abhiisit over the weekend.
Speaking to Nation Multimedia Group's editor-in-chief Suthichai Yoon on the World Pulse TV show - being aired nationwide this evening, Abhisit said there would be no diplomatic protest or recalling of Thai ambassadors at this point in time.
Diplomatic relations went into a tailspin last week after Hun Sen said his "old friend" Thaksin Shinawatra, the former Thai PM, would be welcome to live in Cambodia.
Hun Sen said he would not extradite Thaksin to face prison terms in Thailand because he considered his crimes were political in nature. He later said he would make the fugitive premier an economic adviser.
Hun Sen made the statement shortly after arriving in Thailand to attend the 15th Asean Summit in Cha-am over the weekend.
Abhisit said Hun Sen needed to hear all the facts before any conclusion could be reached. The Cambodian needed to know what laws Thaksin had violated and then decide as to whether the former PM should be sent back to Thailand, if and when he arrives in
Cambodia.
Abhisit dismissed suggestion that Hun Sen's remarks spoiled the Asean Summit, hosted by Thailand in Hua Hin and Cha-am over the past weekend. The PM said he was satisfied with the outcome of the summit.
No other leaders at the summit asked about Hun Sen's statement, Abhisit said.
When asked about Chavalit Yongchaiyudh's trip to Phnom Penh, which sparked Hun Sen's remarks, Abhisit suggested the Pheu Thai politician needed to re-evaluate whether his actions had hurt or helped relations with Cambodia.
Abhisit said he was willing to talk to Thaksin about national reconciliation provided the fugitive premier returned to the country and accepted findings from the country's justice system, which had convicted him of fraud and corruption.
"If he is not willing to abide by our law then what's the use of talking to him?" he asked.
Sunday, October 25, 2009
Questionable drug decision
Portions of the US public and media have praised the unilateral decision by President Barack Obama to partially legalise possession, use and sale of so-called ''medical'' marijuana. The legal issue is a local matter, but the fallout will not remain inside US borders. The sudden turn-around on an important drug issue by the US leader will have ramifications in many other countries, including Thailand and its neighbours. As the public debate over this controversial step shows, the issue goes well beyond the intent of the Obama government to put anti-drug agents to work on more important cases than people trying to alleviate their pain through a drug.
First and foremost is the question of whether the term ''medical marijuana'' is warranted and deserves recognition by a government. Thousands of anecdotes attest that sufferers of advanced glaucoma, back pain and other often untreatable symptoms feel better after smoking marijuana. But hundreds of medical studies have found no physiological support for the claims. In addition, hundreds of herbal and medical drugs are available over the counter or through prescription to treat pain. The available scientific evidence hardly supports the decision by the US federal government to legalise a prohibited drug for the first time in many generations.
Sale and use of medical marijuana in the US and other countries has already become a joke. In Europe, Canada and in several US states, marijuana shops sell tonnes of the drug annually. Prescriptions allowing purchase, storage and use are simple to obtain from licensed ''medical workers''. There is no reason to believe that more widespread licensing of marijuana shops is likely to end the fraud: a tiny number of pain sufferers targetted for benefits from marijuana are almost lost in the crowd of scammers who simply want to smoke marijuana.
The debate about marijuana _ whether it is harmful, whether it is rightly part of the worldwide ''war on drugs''' _ is beside the point. The decision by the US government, especially after President Obama specifically promised there would be no moves towards drug legalisation, will reverberate in many quarters. At the least, the effective if restricted legalisation will encourage illegal marijuana farming. The most ignored question in western countries which have blithely and unilaterally legalised recreational drugs is where the supplies come from. The US, like other governments, has made it legal to use a product that remains largely illegal to grow, harvest, package or sell in wholesale lots.
In Thailand, of course, the US government's decision has no legal effect. Possession, sale in drugstores and use of marijuana may now be legal under government supervision in the US. But it remains illegal here. In both countries, it is illegal to grow, harvest, ship across borders or sell marijuana in large quantities. The profits for illegal drug dealing are therefore not going to be reduced, in Thailand and other countries, or in the US.
While drug legalisation is a domestic US issue, there is great danger in the actions of the Obama government. The decision to support, rather than to target, the sellers and buyers of medical marijuana might deserve support except for one problem. By assuming control of the market, the US government now becomes both the regulator and more importantly the tax collector in a portion of the illicit marijuana trade in the US. This is potentially a dangerous and slippery slope. A government dependent upon taxes from the drug trade will naturally extend the scope of that business. One need only look at the virtual explosion of gambling in the US, let alone the expanding gambling business under the Thai government's supervision, to envision a government with a ''drug dependence'' and deeply involved in such a morally controversial subject.
First and foremost is the question of whether the term ''medical marijuana'' is warranted and deserves recognition by a government. Thousands of anecdotes attest that sufferers of advanced glaucoma, back pain and other often untreatable symptoms feel better after smoking marijuana. But hundreds of medical studies have found no physiological support for the claims. In addition, hundreds of herbal and medical drugs are available over the counter or through prescription to treat pain. The available scientific evidence hardly supports the decision by the US federal government to legalise a prohibited drug for the first time in many generations.
Sale and use of medical marijuana in the US and other countries has already become a joke. In Europe, Canada and in several US states, marijuana shops sell tonnes of the drug annually. Prescriptions allowing purchase, storage and use are simple to obtain from licensed ''medical workers''. There is no reason to believe that more widespread licensing of marijuana shops is likely to end the fraud: a tiny number of pain sufferers targetted for benefits from marijuana are almost lost in the crowd of scammers who simply want to smoke marijuana.
The debate about marijuana _ whether it is harmful, whether it is rightly part of the worldwide ''war on drugs''' _ is beside the point. The decision by the US government, especially after President Obama specifically promised there would be no moves towards drug legalisation, will reverberate in many quarters. At the least, the effective if restricted legalisation will encourage illegal marijuana farming. The most ignored question in western countries which have blithely and unilaterally legalised recreational drugs is where the supplies come from. The US, like other governments, has made it legal to use a product that remains largely illegal to grow, harvest, package or sell in wholesale lots.
In Thailand, of course, the US government's decision has no legal effect. Possession, sale in drugstores and use of marijuana may now be legal under government supervision in the US. But it remains illegal here. In both countries, it is illegal to grow, harvest, ship across borders or sell marijuana in large quantities. The profits for illegal drug dealing are therefore not going to be reduced, in Thailand and other countries, or in the US.
While drug legalisation is a domestic US issue, there is great danger in the actions of the Obama government. The decision to support, rather than to target, the sellers and buyers of medical marijuana might deserve support except for one problem. By assuming control of the market, the US government now becomes both the regulator and more importantly the tax collector in a portion of the illicit marijuana trade in the US. This is potentially a dangerous and slippery slope. A government dependent upon taxes from the drug trade will naturally extend the scope of that business. One need only look at the virtual explosion of gambling in the US, let alone the expanding gambling business under the Thai government's supervision, to envision a government with a ''drug dependence'' and deeply involved in such a morally controversial subject.
Asean leaders back Japan's EAC
"There is no need to decide now whether we should include the United States or not."YUKIO HATOYAMA JAPANESE PRIME MINISTER
PM rules out rushing into rigid structure
CHA-AM:Asean leaders have backed Japan's East Asian Community concept but cautioned that it will not become reality overnight.
The Japanese-proposed idea overshadowed the meeting of the East Asia summit yesterday which brought together 10 Asean leaders and their six partners from China, Japan, South Korea,India, Australia and New Zealand.
Prime Minister Abhisit Vejjajiva said after the meeting of 16 leaders that Asean agreed with Japan's East Asian Community (EAC)proposal but said it would not be realised in the next two or three years.
The EAC needed more study starting with a meeting of officials in early December in Australia to seek more details of the concept, a government source said.
Although the road to the EAC needed more debate, Mr Abhisit said the EAC should not be separated from existing cooperation with Asean.
Asean secretary-general Surin Pitsuwan said the Japanese concept showed that East Asia would become a significant community. Both the Japanese and Australian prime ministers also agreed on the importance of Asean, he said.
In the chairman's statement released at the end of the meeting, Japan said the EAC would be based on the "principle of openness, transparency and inclusiveness and functional cooperation".
An issue which remains to be debated
is the role of the US in the EAC.
Under President Barack Obama, the US wants to play a bigger role in Asia.The new Japanese government has also made clear its position that its alliance with the US is the cornerstone of its policy.
Japanese Prime Minister Yukio Hatoyama said on Saturday the EAC concept should have some room for the US to play.
But Mr Hatoyama reacted cautiously to the US involvement yesterday.
"It's not a matter of who will be included or not. There is no need to decide now whether we should include the United States or not," he said.
"I think my long-term vision of forming an East Asian Community was largely welcomed by participants."
Malaysian Prime Minister Najib Razak told the Bangkok Post "we are quite open" to a US role."The whole concept of an East Asian Community should be open in the sense that we should be able to relate to other countries as well.
"We engage with them and we should see to what extent we can integrate them within the concept of the East Asian Community," he said.
Mr Najib said advancing the concept should be done in stages.
Malaysia looks forward to the vision of the EAC, he said, adding that the notion of "this viable economic grouping" has already taken root.
He said apart from the Asean plus three (China, Japan and South Korea)summit, free trade agreements have already been signed by Asean on one hand and China, Japan and South Korea on the other."So we are [already] moving forward and the three countries China, Japan and South Korea - are very supportive of Asean," he said.
Australian Prime Minster Kevin Rudd, who first presented his "Asia Pacific community" idea in June last year, told leaders on the sidelines of the summit that his plan centred on increasing regional cooperation in areas of the economy, security and the environment.
"What I detect across the region is an openness to a discussion about how we evolve our regional architecture into the future," said Mr Rudd, who has put a long-term time frame on his plan -2020.
Asked about the proposals of Australia and Japan, Mr Abhisit said Southeast Asian leaders had emphasised that it was not all that important to decide on some kind of rigid structure for the time being.
But the prime minister said the "regional architecture will continue to evolve and we must find a way to improve upon the way we work together to address the issue".BANGKOK POST AND REUTERS
WHO DID WHAT Key results of the Asean summit. Asean
6 free trade agreements signed with six countries at the East Asia summit
Implementation this year of the US$120 billion (4 trillion baht) Chiang Mai Initiative China
Pledge of $10 billion to the China-Asean Fund on Investment and Cooperation
Pledge of $15 billion for commercial credit Pledge of $200 million to the Asian Bonds Market Initiative
Pledge of $100,000 to the Asean Foundation to promote people and cultural ties India
Pledge of $50 million to the Asean-India Cooperation Fund and Asean Development Fund Japan
Contribution of $13 million to the Japan-Asean Integration Fund for disaster management and emergency response South Korea.
PM rules out rushing into rigid structure
CHA-AM:Asean leaders have backed Japan's East Asian Community concept but cautioned that it will not become reality overnight.
The Japanese-proposed idea overshadowed the meeting of the East Asia summit yesterday which brought together 10 Asean leaders and their six partners from China, Japan, South Korea,India, Australia and New Zealand.
Prime Minister Abhisit Vejjajiva said after the meeting of 16 leaders that Asean agreed with Japan's East Asian Community (EAC)proposal but said it would not be realised in the next two or three years.
The EAC needed more study starting with a meeting of officials in early December in Australia to seek more details of the concept, a government source said.
Although the road to the EAC needed more debate, Mr Abhisit said the EAC should not be separated from existing cooperation with Asean.
Asean secretary-general Surin Pitsuwan said the Japanese concept showed that East Asia would become a significant community. Both the Japanese and Australian prime ministers also agreed on the importance of Asean, he said.
In the chairman's statement released at the end of the meeting, Japan said the EAC would be based on the "principle of openness, transparency and inclusiveness and functional cooperation".
An issue which remains to be debated
is the role of the US in the EAC.
Under President Barack Obama, the US wants to play a bigger role in Asia.The new Japanese government has also made clear its position that its alliance with the US is the cornerstone of its policy.
Japanese Prime Minister Yukio Hatoyama said on Saturday the EAC concept should have some room for the US to play.
But Mr Hatoyama reacted cautiously to the US involvement yesterday.
"It's not a matter of who will be included or not. There is no need to decide now whether we should include the United States or not," he said.
"I think my long-term vision of forming an East Asian Community was largely welcomed by participants."
Malaysian Prime Minister Najib Razak told the Bangkok Post "we are quite open" to a US role."The whole concept of an East Asian Community should be open in the sense that we should be able to relate to other countries as well.
"We engage with them and we should see to what extent we can integrate them within the concept of the East Asian Community," he said.
Mr Najib said advancing the concept should be done in stages.
Malaysia looks forward to the vision of the EAC, he said, adding that the notion of "this viable economic grouping" has already taken root.
He said apart from the Asean plus three (China, Japan and South Korea)summit, free trade agreements have already been signed by Asean on one hand and China, Japan and South Korea on the other."So we are [already] moving forward and the three countries China, Japan and South Korea - are very supportive of Asean," he said.
Australian Prime Minster Kevin Rudd, who first presented his "Asia Pacific community" idea in June last year, told leaders on the sidelines of the summit that his plan centred on increasing regional cooperation in areas of the economy, security and the environment.
"What I detect across the region is an openness to a discussion about how we evolve our regional architecture into the future," said Mr Rudd, who has put a long-term time frame on his plan -2020.
Asked about the proposals of Australia and Japan, Mr Abhisit said Southeast Asian leaders had emphasised that it was not all that important to decide on some kind of rigid structure for the time being.
But the prime minister said the "regional architecture will continue to evolve and we must find a way to improve upon the way we work together to address the issue".BANGKOK POST AND REUTERS
WHO DID WHAT Key results of the Asean summit. Asean
6 free trade agreements signed with six countries at the East Asia summit
Implementation this year of the US$120 billion (4 trillion baht) Chiang Mai Initiative China
Pledge of $10 billion to the China-Asean Fund on Investment and Cooperation
Pledge of $15 billion for commercial credit Pledge of $200 million to the Asian Bonds Market Initiative
Pledge of $100,000 to the Asean Foundation to promote people and cultural ties India
Pledge of $50 million to the Asean-India Cooperation Fund and Asean Development Fund Japan
Contribution of $13 million to the Japan-Asean Integration Fund for disaster management and emergency response South Korea.
Buyers sought for Fuso plant
The Japanese truck maker Mitsubishi Fuso is expected to finalise talks with two or three manufacturers next month for the purchase of its plant in Thailand.
Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
"There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.
Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
"There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.
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