Giant retailers ‘unfairly raise fees’

By Petchanet Pratruangkrai,
Kwanchai Rungfapaisarn
The Nation
Published on July 31, 2009

Rice packers yesterday insisted some of the giant modern retailers increased the fee demanded from them every year, adding to their cost burden.
Somroek Tangpiroonthum, president of the Thai Rice Packers Association, said large retailers had increased the “back-margin” fee (also known as the “entrance” or “supplement” fee) from 1-2 per cent of the selling price to 5-10 per cent in recent years.

Some modern retailers have also marked up the retail price by 6-10 per cent, he said, resulting in consumers paying over the odds.

He called for the government to negotiate with large retailers to maintain the back-margin fee, as the sale of packed rice offered a low margin. If such charges were increased further, then suppliers would have to pass the burden on to consumers because of higher operating costs.

The Internal Trade Department will soon set up a meeting between the giant retailers and the rice packers in a bid to solve the problem.

Somroek also called on the government to release its rice stockpiles – particularly jasmine rice – via auction, in order to increase the supply for domestic traders. This would make up for a shortfall of rice in private warehouses.

Department director-general Yangyong Phuangrach said rice packers had agreed to freeze their retail prices for another two months, in order to ease the burden on consumers.

The government will release about 70,000 tonnes of jasmine rice via auction on August 10, in order to increase supply for domestic consumption, he added.

Meanwhile, Tesco Lotus senior vice president Darmp Sukontasap said each year, his company sold about 17 million packs of rice, the equivalent of 85,000 tonnes. This is only 0.5 per cent of the overall rice consumption in the country in one year.

With all the modern retailers combined, the volume is unlikely to exceed 2 per cent of national consumption, he said.

Therefore, it is unlikely the business these retailers conduct with members of the rice packers’ association can have a major impact on the market price of rice, he argued.

Furthermore, he added, the rice that the packers sell to modern retailers is only 30 per cent of what they produce, with the rest sold on the open market.

“It is unlikely the price of the 30 per cent sold to us would have a major impact on the 70 per cent sold on the open market,” he said.

“The margin per unit for rice packers is now 8-10 per cent, which is much more than the margin of modern retailers. Therefore, we see no reason for an increase in the price of rice sold to consumers. This year, there’s enough rice for both domestic consumption and export, and the market price is 15-per-cent lower than last year,” Darmp said.

โพลชี้พิษหวัด พังแสนล้าน คนเมินกิน-เที่ยว

โดย ไทยรัฐออนไลน์
23 กรกฎาคม 2552, 18:50 น.
โพล ม.หอการค้าไทย ชี้คนไทยแหยงหวัดใหญ่ 2009 เมินกิน-เที่ยว คาดถ้าระบาดยืดเยื้อถึงไตรมาส 4 เศรษฐกิจพัง 1.2 แสนล้าน จีดีพีลบสูงสุด 5.5% “ธนวรรธน์” อัดรัฐอย่าดีแต่พูดไปวัน..

วันนี้ (23 ก.ค.) นายธนวรรธน์ พลวิชัย ผู้อำนวยการศูนย์พยากรณ์เศรษฐกิจและธุรกิจ มหาวิทยาลัยหอการค้าไทย เปิดเผยผลสำรวจทัศนะประชาชนต่อการระบาดของโรคไข้หวัดใหญ่ 2009 ส่วนใหญ่เห็นว่าการระบาดไข้หวัดใหญ่ 2009 เป็นปัจจัยลบอันดับ 1 ที่ส่งผลกระทบต่อเศรษฐกิจประเทศ ทั้งด้านท่องเที่ยว และการบริโภคประชาชน คาดว่า หากการระบาดเกิดต่อเนื่องจนถึงไตรมาส 3 จะทำให้รายได้จากการท่องเที่ยว และการบริโภคลดลง 3-6 หมื่นล้านบาท และทำให้อัตราการขยายตัวทางเศรษฐกิจ (จีดีพี)ไตรมาส 3 ติดลบ 3.5-4.5% ขณะที่จีดีพีทั้งปี ลบ 3.8-4.8% จากเดิมที่ศูนย์คาดว่า จีดีพีปีนี้จะลบ 3.5%-4.5%

นายธนวรรธน์ กล่าวต่อว่า แต่หากการระบาดยังยืดเยื้อถึงไตรมาส 4 จะทำให้รายได้การท่องเที่ยวและการบริโภคลดลง 6 หมื่นล้านบาทถึง 1.2 แสนล้านบาท จีดีพีไตรมาส 4 ลบ 0.5-1% และทั้งปีติดลบ 4-5.5% ทั้งนี้ ต้องยอมรับว่าไข้หวัดใหญ่ 2009 มีผลกระทบทางจิตวิทยา ทำให้การฟื้นตัวของเศรษฐกิจอาจไม่เป็นไปตามเป้าหมายที่คาดว่าจะฟื้นตัวไตรมาส 4 เพราะทำให้การบริโภคและกิจกรรมบันเทิงลดลง และยิ่งมีคนติดเชื้อและเสียชีวิตมากขึ้น ประชาชนก็ยิ่งกังวล ซึ่งสะท้อนว่าคนไทยยังไม่มั่นใจต่อมาตรการป้องของรัฐ เพราะแนวโน้มการระบาดในไทยยังเพิ่มสูง จากต้นเดือน ก.ค.ที่มีผู้เสียชีวิตต่อผู้ติดเชื้อเพียง 0.4% แต่ขณะนี้เพิ่มเป็น 0.65% และยังมีคนติดเพิ่มขึ้นอย่างต่อเนื่อง

ทั้งนี้ ผู้อำนวยการศูนย์พยากรณ์เศรษฐกิจฯ เห็นว่า สิ่งสำคัญที่รัฐต้องเร่งทำ คือการป้องกันดูแลให้ผู้ติดเชื้อ และเสียชีวิตลดลง ควบคู่กับการเรียกความเชื่อมั่นกลับคืนมา ภายใต้การดำเนินมาตรการที่เป็นรูปธรรม ไม่ใช่พูดเพียงว่าให้ประชาชนเชื่อมั่น หากรัฐเรียกความเชื่อมั่นประชาชนกลับมาได้ แม้การระบาดยังมีอยู่ แต่ผลกระทบทางเศรษฐกิจน่าจะคลายความรุนแรงลงได้

ด้านนายพรศิลป์ พัชรินทร์ตนะกุล กรรมการรองเลขาธิการหอการค้าไทย กล่าวว่า การระบาดไข้หวัดใหญ่ ส่งผลกระทบรุนแรงให้การท่องเที่ยวปีนี้ลดลง 30% ทำให้นักท่องเที่ยวลดลง 2-3 ล้านคน รายได้หายไป 2 แสนล้านบาท และยังกระทบต่อธุรกิจที่เกี่ยวเนื่อง รวมถึงการบริโภคภายในประเทศ ที่สำคัญยังทำให้การส่งออกลดลง เพราะคนกังวลไม่กล้าใช้จ่าย คาดว่าการส่งออกสินค้ากลุ่มอาหารทั้งปีนี้จะลบ 7% ขณะที่ภาพรวมการส่งออกทั้งปีจะติดลบ 15-20% โดยไตรมาส 3 จะติดลบ 18-20% ขณะที่ไตรมาส 4 ติดลบ 10-15%

Shopping behaviour changing in troubled times

By KWANCHAI RUNGFAPAISARN THE NATION
Published on July 23, 2009

Shopping habits are changing now that times are tough and people need to control their impulses.
Mitch Webber, managing director for OgilvyAction, a sales-acceleration unit of the Ogilvy Group, said now that shoppers have more limited budgets they spend more time considering their purchases.

“Through our ‘Shoppers’ Change in Attitude’ study, we have discovered that certain products are being directly impacted by the change in shoppers’ behaviour. A significant number of consumers [61 per cent] tend to make their final decision about the product they want to buy inside the store, the last touch point where transactions occur,” he said.

Webber said about 8 per cent of the shoppers decided on the product category they wanted to purchase from inside stores, while 21 per cent and 32 per cent based their decisions on the brand and value/quantity, respectively.

Despite the recession, sale of essential goods such as toothpaste and condiments, as well as perishable products appear to remain unchanged. Consumers are also usually less price sensitive in this category.

However, they appear to be purchasing luxury or non-essential products in smaller quantities or only during promotions. They also seem to be considering cheaper alternatives.

Webber said the global slowdown had had an impact on Thailand’s economic standing, while overall consumer spending is projected to fall by 2.2 per cent to about Bt4.7 trillion this year.

According to the survey, about 55 per cent of Thai consumers are not confident about their personal finances, while 66 per cent think it is “not such a good or even a bad time” to buy things they do not need immediately. About 54 per cent prefer saving any leftover cash.

It is imperative for retailers and makers to understand shopper’s attitudes towards different products and how they make their decisions, Webber said. Huge discounts are not necessarily the best answer, because consumers will continue expecting cheap products and firms will not be able to raise prices once the recession ends.

He said in-store advertising could actually gauge the effect a campaign can have on sales.

“Asia is driving a lot of new ideas and will lead the world in terms of shoppers’ attitudes. Here we have more opportunities and freedom inside stores,” he added.

Turning NBT into a public-service station

By Kwanchai Rungfapaisarn
The Nation
Published on July 10, 2009

PM’s Office Minister Satit Wongnongtaey this month will meet with Prime Minister Abhisit Vejjajiva to discuss turning state-run NBT, or Channel 11, into a public organisation.
The transformation could begin as early as next month.

Satit said the committee in charge of transforming Channel 11 had submitted its findings to him two weeks ago.

“Under the concept they came up with, we would make Channel 11 an educational channel serving the public interest. It would play a major role as a means of communication between the government and citizens,” he said.

Satit said under the public organisation, Channel 11 would receive Bt700 million a year in government funding. The station would be able to carry advertising, but only corporate logos and sports commercials.

“I would like to see all government agencies be required to earmark a certain amount of their advertising budgets for the station. That would help increase Channel 11’s revenue,” said Satit.

He said the committee thought Channel 11’s transformation should occur in phases, starting with staff, finances and assets being separated from the Public Relations Department and placed under a public organisation. There would also be a review of the company’s balance sheet.

“Individual staff at Channel 11 could decide whether to go with the new independent organisation or stay in the Public Relations Department, which now oversees the channel’s programming but would no longer do so,” said Satit.

The minister said the final phase would entail Channel 11 being completely transformed into a public organisation, including its eight broadcast stations upcountry.

“The last three months have proved Channel 11 can present more in-depth content than it has in the past two years, particularly news programmes,” said Satit.

He said he wanted the station to provide in-depth and informative content to diverse audiences. The programming would be reshuffled every three months.

“For me, separating Channel 11’s staff, finances and assets from the Public Relations Department is one of the biggest issues concerning this,” said Satit.

He said Channel 11 had contributed Bt120 million to the Public Relations Department and that once the transformation was complete, the department would lose that revenue source.

Tax change for jewellery industry

By WICHIT CHAITRONG
THE NATION
Published on June 30, 2009

The government has given the green light for the jewellery industry to pay a 1-per-cent withholding tax on imported raw materials instead of the present 7-per-cent value-added tax (VAT).
The change is aimed at lowering the industry’s tax burden and promoting Thailand as a business centre for precious stones and jewellery.

Prime Minister Abhisit Vejjajiva said the move would also boost the industry’s competitiveness in export markets.

Small and medium-sized exporters have complained that claims for VAT refunds on raw materials used in producing products for export are time-consuming and complicated.

The jewellery industry is one of the country’s four biggest foreign-exchange earners, employing 1.1 million people and generating annual revenue of Bt280 billion.

Finance Minister Korn Chatikavanij said his ministry would propose the tax change to the Cabinet next month, so that it can be implemented.

By Somluck Srimalee
The Nation
Published on May 25, 2009

A vice dean of Thammasat University’s Economics Faculty backs a proposal that the government impose a land tax, saying the move will ease concentration of land ownership in the hands of a few rich people and open more land to agriculture.

Speaking at a round table conducted by Krungthep Thurakij last week, the vice dean for student affairs at Tham-masat’s Economic Faculty, Duangmanee Laovakul, said the faculty’s Economic Research and Training Centre had calculated that the move would generate between Bt43.39 billion and Bt2.6 trillion per year from land tax, depending on the tax rate.

She said the proposal was a good one because it would become a tool with which the government could distribute land away from landlords and towards other sectors of the economy, especially agriculture.

For instance, research has discovered that one landowner in Bangkok holds land totalling 2,036 rai, 2 ngan and 57.3 square wah, when Bangkok’s total area amounts to only 927,074 rai.

Duangmanee said that if the government announced a land tax and effectively collected the tax, it would increase the cost of holding land and could become a tool for easing the concentration of land in just a few hands.

If the government succeeds in taxing 100 per cent of the total land value, it will collect between Bt86.78 billion and Bt2.6 trillion, depending on a tax rate from 0.01 per cent to 0.3 per cent, she said.

If the government taxes only 50 per cent of all land value, it will collect between Bt43.39 billion and Bt1.3 trillion, using the same range of tax rates.

“Although it will be difficult to launch land tax laws, this tax will promote fairness and prevent the rich from dominating land-resource use,” she said.

A representative of a Bantad mountain community in Trang, Boon Jung, said his community supported the government in launching land tax legislation because it would help farmers to gain more land for their crops. At present, most land across the country is owned by landlords who hardly use it, he said.

If the government introduces a land tax, this will increase the cost of holding land and may force landlords to make proper use of their land or sell it to reduce their tax burden.

However, Democrat Party MP and former deputy finance minister Pichet Phanvichartkul said that before the government could launch land tax legislation, it had to clear up the picture between Land Tax and Household Tax. Housing Business Association president Issara Boonyong said the government had to study the proposed land tax to determine whether or not it would help to solve the problem of distributing land for the use of farmers.

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Some exports start to recover

By Wichit Chaitrong
The Nation
Published on April 30, 2009

Unemployment also down, but ministry warns of tough road ahead

A glimmer of good economic news has appeared, with indicators suggesting some sectors are starting to recover from the global downturn, the Finance Ministry said yesterday.

There were signs indicating the processed-food, electronics and electrical home-appliance industries took initial steps towards recovery in March, ministry spokesman Ekniti Nitithanprapas said.

He said economic recovery in China, the Middle East and Africa – important new markets for these three sectors – had contributed to the improved picture.

“We should not be laid back just yet, since the figures cover only the past two months. The US and Japanese economies are still struggling,” he said.

“However, China, the Middle East and Africa are doing much better amid the global recession, so the government should help facilitate the shifting of resources to back the recovery of growth sectors.”

Shipments of processed-food exports in January contracted by 8.2 per cent year on year, but February and March figures showed growth of 4.6 per cent and 2.8 per cent, respectively.

Moreover, exports of frozen chicken, seafood and canned tuna are expected to have windfall gains from the outbreak of swine flu, said Ekniti.

Exports of electronics also showed some improvement, as the pace of contraction slowed from year-on-year growth of minus 42.1 per cent in January to minus 27.4 per cent last month.

Exports of electrical home appliances also moved in the right direction, growing at minus 29.4 per cent in March, against minus 34.3 per cent in February.

The huge stimulus package implemented by the Chinese government has boosted demand for Thai exports, he said.

Exports to China shrank 14 per cent year on year in March, against contractions of 40.1 per cent and 28.9 per cent in January and February, respectively.

Exports to the Middle East expanded 1.6 per cent and 3.3 per cent in February and March, against a contraction of 5.9 per cent in January.

Exports to Africa expanded 4.9 per cent and 17.6 per cent in February and March, versus growth of minus 25.1 per cent in January.

Exports of jewellery and steel products to Australia expanded last month despite

a 1.4-per-cent contraction of overall export growth to the country, sharply down from

the 49.7-per-cent year-on-year growth recorded in February.

Meanwhile, the unemployment rate showed signs of easing, standing at 1.9 per cent in February, down from 2.4 per cent in January, due partly to labour demand in recovering sectors.

Ekniti said unemployment was, however, still an issue of concern.

He said public spending had also been gathering momentum, which should boost domestic consumption in the months ahead.

Capital spending by the government between January and March rose 14 per cent year on year to Bt100.1 billion, while current spending on routine operations of state agencies increased 44.7 per cent to Bt423 billion.

Domestic consumption and private investment, however, showed a further decline in the first quarter.

Collection of value-added tax – a key consumption indicator – was sharply down by 19.2 per cent year on year, against a 0.1-per-cent expansion in last year’s fourth quarter.

Imports of capital goods – a private-investment indicator – contracted by 23 per cent year on year.

The Finance Ministry maintains its forecast of economic contraction between 2 and 3 per cent this year. It will review its forecast in June, when it will take into account the impact of swine flu, the latest world economic situation and the most recent political developme

SCG quarterly profit drops 27%

SCG quarterly profit drops 27% – Nationmultimedia.com

By The Nation

The quarterly net profit of Siam Cement Plc, Thailand’s largest industrial conglomerate, fell 27 per cent on year due to the plunging demand in the global market.

The company swung back to net profit of Bt5.2 billion in the first quarter, after showing a net loss in the fourth quarter last year due mainly to Bt5 billion inventory losses.

The company attributed the quarterly positive earnings to higher capacity of its petrochemical business. Yet, the revenue of Bt55.2 billion showed a 30 per cent plunge on year, due to the lower petrochemical and paper prices. In the quarter, its earning before interest, tax, depreciation and amortisation amounted to Bt11.7 billion, down 4 per cent on year, due to the lower revenue from the paper and distribution businesses.

Its equity income also dropped 50 per cent on year to Bt1.17 billion, due to the lower contribution from petrochemical units.

“Though the company’s performance was better than expected due to higher demand for chemical products, the market conains uncertainties. Moreover, it is possible that the chemical industry could fall to the downward cycle in the latter half. This could affect the company’s performance in the rest of the year,” the company said in the statement to the Stock Exchange of Thailand. SCG quarterly profit drops 27% – Nationmultimedia.com

Wed, April 29, 2009

Non-financial companies’ earnings down on poor sales

Tue, April 28, 2009 by The Nation

By The Nation

PTT Exploration and Production Plc and Thai Plastic and Chemicals Plc showed dismal quarterly results, with a plunge in net profits as global crisis hit demand.

PTT Exploration and Production’s quarterly consolidated net profit dropped 35.5 per cent on year to Bt5.7 billion, due to an immense increase in expenses. Expenses in the quarter increased Bt2.66 billion or 21 per cent on year to Bt15 billion. Its consolidated revenue however dropped 7 per cent on year to Bt26.5 billion.

Thai Plastic and Chemicals, a major chemical company, reported a 34 per cent drop in consolidated revenue in the first quarter of this year. Revenue in the quarter totalled Bt5.57 billion, down by Bt2.8 billion from the same period last year. This resulted in a 6 per cent or Bt44 million drop in quarterly net profit, to Bt646 million.

Thai Cane Paper Plc’s revenue also dropped 34 per cent on year to Bt813.9 million, while its net profit contracted 14.20 per cent to Bt28 million. Its operating profit also shrank 9.52 per cent to Bt39.9 million.

Last week, most financial institutions also showed a drop in quarter net profits, as loan growth shrinks amid fears of growing non-performing loans.

THAI’s minor shareholders vent frustrations

By Achara Deboonme

The Nation

Published on April 23, 2009

Thai Airways International’s minor shareholders yesterday expressed deep frustration over the company’s poor performance, with some urging the Finance Ministry to tender for all listed shares and delist the company from the bourse if THAI could not be freed from political exploitation.

Sirivat Voravetvuthikun, one of 1,700 stakeholders present at the shareholders’ meeting, said THAI would not return to profitability this year as long as politicians were exploiting the carrier’s management for their own benefit.

“I don’t mind exploitation if it does not affect minor shareholders. The Finance Ministry should tender for all shares at cost and delist the company. Then politicians can do whatever they want with the company,” he said, angrily.

THAI’s shareholders ap-proved a 25-per-cent cut in the directors’ meeting allowance and a 50-per-cent cut in their ticket privileges.

Finance Ministry representative Pankanita Bunkrong also called for the allowance cut to cover all members of committees and subcommittees, as well as outsiders. Moreover, free tickets must be issued only to active directors, not their family members.

Chamsri Sukchotrat, a shareholder and leader of the THAI labour union, said politicians had influence over the management and the board of directors. This affects the company’s performance. Even though all employees are working hard, passengers will not receive value for money, she said.

“Can any executive here say outright that THAI is free from politics?” she asked.

Most shareholders were dismayed over last year’s Bt21-billion net loss despite an-nualised revenue growing 1.3 per cent to Bt202.6 billion. Expenses in the year rose 16.9 per cent to Bt220.7 billion, due partly to Bt5.3 billion for hedging compensation.

One shareholder dared the 12 executives and directors on the stage to announce how much of the loss was attributable to external factors and how much to management failures.

Two shareholders verbally attacked Pichai Chunhavajira, a director who is also chief financial officer of PTT, the cuntry’s largest oil and gas company.

“Other airlines also struck hedging contracts, but they did not suffer as much as THAI. Pichai is on the board and a director of energy companies. Still he could not help THAI. How could the company have bought the contracts when oil prices were at their peak?” said a shareholder named Wanchai.

He added that the management’s claim that political conflicts had affected its performance was not reasonable. “The company was severely affected [by political factors] in late November and December, but what about the rest of the year?”

THAI announced earlier it had lost Bt20 billion following the seizure of Suvarnabhumi Airport last November.

At press time, the shareholders had not voted on THAI’s new directors. The new board will choose the next chairman amid wrangling for control by the Finance and Transport ministries.

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