Economic uncertainties and oil prices are a greater concern than politics, according to Finance Minister Surapong Suebwonglee. ''I don't believe there will be another coup.
Krung Thai Bank has extended two billion baht in credit to Siam Indiga Co, a former affiliate of the ailing President Agri Trading Group, president Apisak Tantiworawong confirmed yesterday.
COMMODITIES
MILAN : World rice output is expected to hit record highs this year, but prices are likely to remain high in the short term before new crops arrive on the market, the United Nations' Food and Agriculture Organisation said yesterday.
The Bank of Thailand is unlikely to raise interest rates at its next meeting on May 21, according to Tarisa Watanagase, the central bank governor. She said yesterday that even though inflation had increased with rising global oil prices, core inflation, which excludes food and energy prices, was expected to remain under the MPC's 3.5% target.
Tax CORNER
It is generally accepted that, where double taxation takes place, i.e. the same amount of profits is taxed more than once, the effective tax rate will be distorted from what the law originally intended to levy.
BOND TRADING
The Thai Bond Market Association (ThaiBMA) will become the Thai capital market's first self-regulated organisation (SRO) starting from later this year. Nattapol Chavalitcheevin, the president of the ThaiBMA, said the Finance Ministry had allocated 170 million baht last year to support the SRO programme.
As homebuyers' purchasing power is under pressure from higher living expenses, the country's second-largest developer, Preuksa Real Estate Plc (PS), is trying to cap unit prices until the end of the year, according to president and chief executive Thongma Vijitpongpun. He said the negative factors affecting residential demand included rising inflation, oil prices and daily living expenses, and the global food crisis.
HOTELS
The InterContinental Hotels Group (IHG) yesterday signed a contract with the hotel owner Amburaya Resort to manage a 300-room Holiday Inn Express on Rama I Road in 2010.
FOOD PROCESSING
Requests by food processors to use the sugar export quota to reduce their costs have been rejected by the Office of the Cane and Sugar Board (OCSB). Processors had requested the access because sugar covered under the export quota is five baht per kilogramme cheaper than domestic sugar. Processors say they have been squeezed by higher-cost sugar since the cabinet approved a 37% rise in prices two weeks ago and may have to raise prices.
Driven by strong sales in the first quarter, Thai Union Frozen Products Plc (TUF), the country's largest processor and exporter of canned and frozen seafood, yesterday raised its dollar sales target this year to 20% growth from a previous target of 12%. ''Despite unfavourable factors, TUF managed to achieve net income growth of 10% from the same period last year while sales also in dollar terms and in Thai baht expanded by 32% and 20% respectively. Given the business prospects, the management is revising its annual sales growth target up to 20% from 12%,'' said president Thiraphong Chansiri.
RETAILING
The Mall Group, the country's second-biggest retail chain, is looking for more farmers to supply quality produce to its high-end supermarkets.
INDUSTRY
Thailand should establish an upstream steel smelter to accommodate increasing local demand, despite strong opposition from environmentalists, said Industry Minister Suwit Khunkitti. Domestic demand for steel is expected to surge in response to the government's megaproject investments and industrial growth, especially in the automobile sector.
INFORMATION SECURITY
Info Zafe Co, a subsidiary of SCG Paper, expects its service revenue to jump five-fold to 50 million baht from 10 million baht last year, according to managing director Montri Mahaplerkpong. The company started offering its specialised services in August of last year, covering document storage, destruction and recycling, and currently has a 25% market share for recycling. This represents 100 tonnes per month from the total market of 400 tonnes.
AUTOMOBILES
The long-time pickup-truck market leader Isuzu has been unable to make a comeback, and Toyota has retained its lead in local pickup sales.
PETROLEUM
Bangchak Petroleum Plc has reported a huge improvement to a consolidated net profit of 852 million baht in the first quarter of 2008, from a loss of 41.9 million baht in the same period last year. The majority state-owned oil refinery recorded total sales revenue of 29.8 billion baht, an increase of 49.4% from 19.98 billion in the same period last year.
LONDON : The UK government faces a legal challenge over tax on pension funds, which if successful, could result in hundreds of millions of pounds being returned to occupational pension programmes, a pension lobby group said on yesterday. Wheels Common Investment Fund, an 8-billion multi-employer scheme covering the UK car industry, and the National Association of Pension Funds (NAPF) are preparing to challenge the British tax authority, HM Revenue & Customs, over valued-added tax (VAT) paid by occupational pension schemes, the NAPF said.
