JTBF Mission to Thailand 2009 (2/23-2/27)

Recent Topics of Thailand and Bangkok

reported by Kanji KATO (Member of Long Stay Committee, JTBF)

  As I participated in JTBF Mission to Thailand 2009, I had an opportunity to stay in Thailand (mainly in Bangkok) for over a week. Following is to report recent topics of Thailand and Bangkok which I perceived during my stay.

1. Influences of world-wide recession

  The sudden world-wide recession has made visible impact to Bangkok. Following is a list of what I observed or overheard.

• According to Japanese Chamber of Commerce, member companies have been uncertain about a declining trend of production reduction. However, they have come to have an outlook lately that the reduction rate will not be more than 30%.
• Capacity utilization of medium and small companies in the car industry is said to be 50%.
• According to a comment of a top executive of some manufacturing company, unemployment is said to reach a million in Thailand, which will not be an overstatement. His company alone had to restructure 2,600 already
• In the majority of Thai local companies, capacity utilization is said to be no more than 40%.
• In Thailand, the military service and entering the priesthood for a certain period are duties of male adult. It is said that an increasing number of them wish to continue the service or the priesthood.
• On February 18th, I went down to World Trade Center and stopped at ISETAN department store. However, shutter doors on the backside were closed. I went around to the front side to find a notice of temporary closing for 18th and 19th. I only remember I encountered month-end or month beginning closure due to inventory clearance. The middle-of-month closure looked unusual.
• I happened to hear a bus tour guide speaking that the buffet style restaurant on 78th floor of Baiyoke Tower, which used to be a popular restaurant for Chinese, Korean and European tourists, is now shut down because of drastically reduced customers.
• Thai Airway is suffering from fallen income and profit and decided, on the board meeting February 11th, to suspend salary increase and bonus for this year.
• In spite of above, the housing fair is said to be going well. Single-house and condominium fair, which was open during February 19th-22nd, was crowded as it was before. They say the advance sales reached a billion Baht and that they felt relieved by the strong demand.

2. Hood Safety and Hygiene Control

  At Fuji super market, I happened to find a label on a cabbage saying "produced in Chiangmai and certified by Agricultural Co-op., Bangkok". I looked around to find some "ORGANIC" labeling or others with picture of producers. This new finding suggested that awareness of safety and hygiene is in an increasing trend in Bangkok also.

  In a meeting at TNSC (Thai National Shippers' Council), I raised a question about an approach to enhance food safety. They said Safety Committee of TNSC had a plan to extend the control system to cover not only leafy vegetables such as cabbages but also other various products, including traceability of chickens, shrimps fishes and so on.

3. Asia getting back on the recovery track

  In some Japanese magazines published in Thailand, I happened to read a comment of Governor Kuroda of Asian Development Bank. He says that financial expenditure of China and recovery of India, which has low dependency on export, will help Asian region sustain the level of 5% growth in the next year.

4. Airport Link

  While I was interested in the operation start of Airport Link, 28.5 Km between Suvarnabhumi airport and Central Bangkok, Ministry of Transport has recently announced that it starts on August 12th, the birthday of Queen Sirikit. The modular train of Siemens, with the highest speed of 160 Km/hour, has recently finished a test run between Airport and　Ramkhamhaeng　station.　Airport to Makkasan (City Air Terminal) will take 15 minutes with 150 Baht for non-stop and 14-45 Baht for stopping at every station.

5. Flat‐sum Cash Benefits 2000 Baht

  While being criticized as dole-out policy or flattering policy, Flat‐sum Cash Benefits will be implemented in April, same as in Japan. The coverage is limited to social insurance members with monthly income lower than 14,999 Baht. 2000 Baht per person, total 8.13 millions recipients amounting 16 billions Baht. Regarding the way how to deliver the benefits, different opinions are seemingly under discussion, depositing to bank accounts or check payment. I wonder what could be treatment of those who are not eligible to join the social insurance. (Ref. Note below)

6. Promotion of Domestic Tourism

  Thai Government is executing a plan to encourage Thai people make domestic trips more easily. As tied-up with the plan, in addition to 5 days holidays of Songkran (Thai New Year, April 11th to 15th), another 5 days holiday is going to be introduced in July (4th to 8th). Ministry of Commerce is seemingly investigating promotion campaign, by involving Thailand Hotel Association, which is to discount hotel charges 50% for Thai residents so far as they show ID card.

  It is an understandable plan to some extent. On the other hand, it is to neglect claims of foreign tourists against dual price system of hotel charges.

  Note： According to later newspaper reports, Thai Government started to hand out 2,000 baht checks on March 26th and being handed out until April 8. Also is reported that recipients will be around 10 million people.