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  1. Former prime minister Thaksin Shinawatra on Sunday attacked a newly launched website opposing his sister, Prime Minister Yingluck Shinawatra. Thaksin, speaking on Skype, told red-shirts gathering at Ratchaprasong intersection on Sunday night that the Thai Spring website would never “be sprung” and disturb his supporters. Retired Pol Gen Vasit Dejkunjorn and former senator Kaewsun Atibodhi unveiled Thai Spring on Thursday as a new venue to air opposition to Prime Minister Yingluck and her government. The website was created after the controversial speech by Ms Yingluck in Mongolia on April 29. The self-exiled convicted prime minister defended Ms Yingluck, who said in the speech that the military coup in 2006, which ousted her elder brother, put an end to the progress of democracy in the country. Critics cried foul over the speech, saying the prime minister was telling only a half truth and intentionally hid the fact of alleged corruption and interference in independent agencies by Thaksin as the reasons leading to the decision by the armed forces to unseat him. Tida Tavornseth, chair of the United Front for Democracy against Dictatorship (UDD), praised those killed during the April and May clashes three years ago and described them as “heroes who sacrificed their lives in peaceful battles to reclaim the people’s powers and restore true democracy to Thailand”. Speaking to a crowd of at least 20,000 UDD supporters, Mrs Tida demanded justice for the people who were killed, injured and incarcerated during and after the 2010 event and urged the state to “expose the truth” to Thai society and the international community. She called on the legislative and administrative branches to push ahead with the amendment of the 2007 Constitution so that the new charter would truly belong to the people. She urged the enactment of reconciliation law to annul convictions and punishments against all political offenders of all colour groups except those who were to be held responsible for the violent crackdown against the red-shirt protesters. They must be legally punished, she said. via Thaksin slams anti-Yingluck website | Bangkok Post: breakingnews.
  2. http://www.bangkokpost.com/opinion/opinion/320167/a-nation-without-a-future Another great article by one of my favorite columnists, K. Voranai.
  3. Finance minister blasted over export target 'goals' The finance minister may lie to the public if necessary to establish confidence, says Kittiratt Na-Ranong, the finance minister and deputy prime minister. "The finance minister can lie about some things, such as export targets. But these are white lies," he said yesterday. "If I said from the start that we couldn't grow, what would be the impact on confidence?" Mr Kittiratt acknowledged that his pledge earlier this year that exports would grow 15% this year was a "white lie". On Tuesday, the government officially cut its export target for 2012 to 9% growth. The target is still higher than forecast by many economists _ the national planning agency, the National Economic and Social Development Board (NESDB), this week cut its export growth forecast for the year to 7.3% from 15.1%. Mr Kittiratt said export targets represented "working goals" aimed at encouraging related parties to put their best efforts forward. But the admission that the targets were known to be unrealistic from the start was criticised from some quarters. Korn Chatikavanij, a deputy leader of the opposition Democrat Party, said he was incredulous to hear a finance minister stating that intentionally deceiving the public was acceptable. "I cannot believe that such statements [by Mr Kittiratt] will result in stronger confidence in the economy," said Mr Korn, who served as finance minister under the Abhisit Vejjajiva government. "Quite the contrary. This can only cause confidence to decline." Mr Korn said exporters and economists have long dismissed the possibility of 15% export growth this year, given the weak state of the global economy and the impact on the domestic supply chain from last year's floods. He noted that some forecasts have exports growing by as little as 3% this year. For the first half of the year, exports contracted by 2% from the same period last year. "Personally, I cannot envision any circumstance where the finance minister may lie to the public," Mr Korn said. In any case, Mr Kittiratt insisted that even with the lower export growth figures, the economy this year would continue to grow strongly thanks to higher domestic consumption, government spending and private investment. He said the NESDB had only slightly reduced its own economic growth forecast for 2012, to 5.5% to 6% growth from an earlier range of 5.5% to 6.5%. "It's a sign that the Thai economy has become more well balanced and no longer depends solely on exports," Mr Kittiratt said at an economics seminar yesterday. He added that the government's export target of 9%, higher than the NESDB estimate, would be maintained to help encourage "all parties to work harder". Economic balance represents the cornerstone of the Yingluck Shinawatra government's policy platform, Mr Kittiratt said, pointing to policies such as the 300-baht minimum wage and farm subsidy programmes as policies aimed at spurring domestic consumption. The government ordered minimum wages to be raised by 40% to 50% to 300 baht per day for Bangkok and six other provinces, while it plans to push daily wages up to 300 baht nationwide starting next year. Mr Kittiratt said auto production could reach an all-time high of 2.3 million cars this year, thanks in part to government tax incentives for first-time buyers. "Domestic purchasing power has increased, which in turn has given investors the confidence to invest to boost their production capacity, since they know that the market is there," he said. Meanwhile, Transport Minister Jarupong Ruangsuwan said the government remains committed to new infrastructure investments that would reduce logistics costs sharply over the next few years. The goal, he said, is to cut logistics expenses from 15.2% of gross domestic product to just 5% within five years. Development plans running through 2020 call for more than 1.28 trillion baht in new investment in rail projects alone, with hundreds of billions of baht in additional funds planned for roads, waterways and air transport infrastructure to help improve logistics networks. New motorways will be built across the country, with toll revenues shifted to an infrastructure fund used to pay for future expansion and maintenance expenses, he said. The fund will also be listed on the Stock Exchange of Thailand to give local investors the opportunity to invest in the projects. http://www.bangkokpost.com/news/politics/309078/kittiratt-i-tell-white-lies
  4. With all the uproar that Chuvit is causing, I wonder how long it will take for someone to take him out, or if he is too public and powerful now to be taken out. He's exposed people at the highest points in Thailand for corruption, and has certainly stopped a lot of black money moving through the system. If he was anyone else, I'd expect him to be dead by the end of the month. However, he is Chuvit. I'm sure he has a lot more dirt that he isn't releasing. If I were one of the corrupt officials, I'd worry that he'd keep unearthing more of my shit and take him out (in my Hollywood world). Anyway, I just can't see this going on forever. I like what he is doing, but he has balls of steel. Lets put it to a vote...you'll remember what you voted. If you guessed correctly, I'll vote for you...twice. Maybe even send you a virtual kiss.
  5. http://thaiwomantalks.com/2012/02/06/ignorance-fury-and-blind-faith-in-the-wrath-against-nitirat/ A really interesting translation of a radio talk show where the caller says he wants to cut off the heads of those that want to amend Article 112. The host makes him admit he has no idea what Article 112 even says.
  6. The Thai Labour Solidarity Committee plans mass gatherings of workers throughout the country to pressure the government to immediately raise the daily minimum wage to 300 baht nationwide, TLSC chairman Chalee Loysoong said on Thursday.[TABLE] [TR] [TD][/TD] [TD][/TD] [/TR] [/TABLE] More...
  7. Good thing that these guys have their priorities straight. If this causes protests in the streets or another coup, I'm not sure Thailand can even recover economically. Between the floods and this . . . who the hell would be crazy enough to pour money into Thailand?
  8. This really has to be be one of the mist ill-informed, head in the sand, delusional opinion pieces I've ever read in the Bangkok Post. If this is really the thinking of people who have any sort of decision making authority in Thailand start packing your bags because the place is doomed. Faulty logic which you're usually taught in beginning debate class. Here's an example that illustrates how stupid this statement is: If you are sitting in a taxi at Asok and Sukhumvit on your way to Charlie Brown's on Soi 11 and I have just entered the BTS at Ekkamai you are closer to Soi 11 than I am but I will be traveling faster than you because the BTS doesn't slow for traffic. There's a better than average chance that I will be seated sipping a beer before your taxi makes it to CB's. Thailand's GDP growth rate has been: 2008: 2.5% 2009: -2.3% 2010: 7.8% Vietnam's GDP growth rate has been: 2008: 6.3% 2009: 5.3% 2010: 6.8% So let's take a baseline of 100. Thailand's GDP went to 102.5 in 2008, 100.14 in 2009 and 107.95 in 2010. Vietnam's GDP went from 100 to 106.3 in 2008, 111.93 in 2009, and 119.54 in 2010. Last time I checked, 119.54 is bigger than 107.95. Vietnam outperformed Thailand by over 10% in that 3 year period. Obviously Vietnam is still playing catch-up but the gap between Thailand and Vietnam decreased by 10% during 2008 - 2010. That is a narrowing gap, not a widening one. Who is this "one" with the expectations? Is he quoting any economists? Is he quoting Vietnamese politicians? No, most likely he's quoting himself. He wants to downplay Vietnam's success so he does so by making up some imaginary path that Vietnam was supposed to be on and then claims they're not doing as well as "he" expected. This is really a weak argument because if there's one thing that is true across the world its that money speeds things up. If Vietnam needs to quickly move goods from Point A to Point B they will build railroads, ferries, more roads, etc. Industry and the government will be more than happy to pay for that if it means bringing in more money. Besides, what is the author really saying? That once Vietnam builds the infrastructure that they'll blow Thailand away? Five to ten years is not a lot of time. If the author is admitting that Vietnam will have the infrastructure to compete with Thailand in 5 -10 years he might try containing his ego just a bit. And remember, Vietnam already outperformed Thailand by over 10% lacking the proper infrastructure. What happens to Thailand when Vietnam does build the roads, airports, trains, etc? Whatever they give this guy to smoke, I want some. There are tons of Thai businesses operating in Vietnam right now. He pulls out one example and tries to make his entire assessment of the country based on one company? Yeah, he's really buzzing now because Thailand has one of the worst educational systems and English literacy rates in the world. One of the things helping Vietnam is not having enough universities in the country. More and more people are being educated overseas. Also, in a somewhat related note, the last survey indicated that the average Vietnamese reads 40 books per year. Thais read, on average 2. This is exactly why Vietnam is such a huge threat to Thailand. They're behind Thailand today but they're catching up fast and they're hungry. Those 40 books being read each year by the Vietnamese are an indication that they're willing to invest in themselves. They see a brighter future. More importantly, they realize they're behind. That's what makes them hungry. Thailand has always had a problem with self-reflection. It never sees itself as the rest of the world sees it. So going back to the author's opening statement, Thailand is already complacent. Instead of English literacy rates improving or the quality of students upon graduation improving the numbers are getting worse. Which is the other side of the coin in terms of the problems Thailand faces. Everything is centralized at in Bangkok and local people have no authority to make their own decisions. Bangkok buys them things they don't need so some fat-cat in Bangkok can scoop millions off the top. Which is how most successful democracies operate. Compared to what? The low amount of corruption in Thailand? WTF?!?! Has the author even been to Thailand? Weren't the red shirt protests a byproduct of the widening gap between rich and poor? I hate to get all religious but what's that quote from The Bible: How can you say to your brother, 'Brother, let me take the speck out of your eye,' when you yourself fail to see the plank in your own eye? You hypocrite, first take the plank out of your eye, and then you will see clearly to remove the speck from your brother's eye. This is why Vietnam will overtake Thailand in the next 10 or 20 years.
  9. http://www.bangkokpost.com/news/politics/253662/chalerm-vows-lese-majeste-net-crackdown How to read this story: PT wants to shed the image of being anti-monarchy so they're coming out guns ablazing at websites. There will still be anti-monarchy sentiments by some in the UDD and PT but now the PT can post stats about how many websites they've closed down and how diligent they are in stamping out anti-monarchy writings so the Democrats and PAD can't use that directly against them.
  10. It seems that every time I read a news story that involves the red shirts, UDD, Puea Thai, or anybody associated with that side of the political divide there are certain words that always seem to be in the article. Threatened Warned There are some others but they all basically have the same meaning. I'll call that whole side the "red group" since they're all sort of the same thing anyway. So, the red group has made it a habit to threaten and warn whenever they don't like something. Seriously, go read today's newspaper and pick any story that involves some differences between reds and another group. The story has about an 80% chance of saying that this or that official "warned [iNSERT ANOTHER GROUP HERE] not to [iNSERT SOMETHING THE REDS DON'T WANT]." Going back to the protests last year, how often did the red shirts "warn" the government not to do things? They "warn" the Democrats not to hold their rally at Ratchaprasong. They warn, they threaten, etc. etc. They even warn against things that people haven't even mentioned before. I've seen them warn the government not to disrupt their rallies or even to allow police near their rallies. I know these are limited examples but go ahead, start looking for those words, warn and threaten, as you read the Thai media. You'll start seeing it everywhere. The ultimate goal is to intimidate people. Even if the government had no plans to disrupt their rally they get in the media by "Warning" the government not to. Then if the government allows them to rally peacefully they can claim it was because they had warned to government not to interfere. If they break laws or otherwise cause the government to get involved they can justify any response they choose because they had already "warned" the government. Yet, when you read stories like the one below where red shirt supporters intimidate journalists, they're "asked" to ensure that their people are kept in check. No warnings or threats to their fellow reds when they are clearly acting up. http://www.thailandfriends.com/showthread.php/47178-Chalerm-vows-lese-majeste-net-crackdown Seriously, once you notice the language, you'll see it everywhere.
  11. In perhaps the most amusing effort to discredit US President Barack Obama's plan for nationalized health care - if not the most ridiculous - US financial newspaper Investor's Business Daily has said that if Stephen Hawking were British, he would be dead. "The controlling of medical costs in countries such as Britain through rationing, and the health consequences thereof, are legendary," read a recent editorial from the paper. "The stories of people dying on a waiting list or being denied altogether read like a horror script... "People such as scientist Stephen Hawking wouldn't have a chance in the UK, where the National Health Service would say the life of this brilliant man, because of his physical handicaps, is essentially worthless." The paper has since been notified that Hawking is both British and still among the living. And it has edited the editorial, acknowledging that the original version incorrectly represented the whereabouts of perhaps the world's most famous scientific mind. But it has not acknowledged that its mention of Hawking misrepresented the NHS as well. "I wouldn?t be here today if it were not for the NHS," Hawking told The Guardian. "I have received a large amount of high-quality treatment without which I would not have survived." The best you can say about Investor's Business Daily is that unlike US radio talk host Rush Limbaugh, it has not compared Obama's health care logo to a swastika. http://www.theregister.co.uk/2009/08/12/hawking_british_and_alive/
  12. Why events in Libya - not the revolt, but the insurgence which has moved in war The Libyan society consists of 26 clans. Ghaddafi united them by the rigid control and distribution of incomes of oil. Thus in Cyrenaica (which centre is Bengasi) latently remained separatism, but the management of clans considered that they may receive more incomes. So - really Kaddafi supervised only iceberg top, I think, he did not supervise all situation, at all his desire for it is impossible, to take and unite, creating a new state. Therefore the rim of the centralisation, softened by social welfare pillow, in due course has burst. I note - that compared with Egypt, Tunisia, Algyria, Yemen, - in Libya there was not poverty. Many oil, small population, cheap prices, first classes ways, some cars in every family, government subsidies, high level of education - it was Libya before 17. February 2011. I know people, who have visited Libya. Libya as a tidbit, are interested by some western countries. Judging by persistence - it is France and Britain, maybe Italia, which trying to solve their problems by the US arms. US don't want to interference, because they stuck in Afghanistan and Iraq, and maybe in the next time will need the intervention in the Persian Gulf (Qatar, Bahrein, Saudia) and Yemen. I consider, the external factors - somehow promises of the West promoted for heads of separate clans in the east of Libya, the financial help to them. The clans system suggests obedience of rank-and-file members of a clan to its elders. Yesterday the Council of Elders has declared that supports Kaddafi - the clan supported, today The Elders has guarantees from outside the West - the clan has told to be at war, and all its rank-and-file members automatic have changed a position. And, probably, militaries belonging to rebellious clans, officials, have joined at once to the opposition party, to incurgence. Plus, probably, the West worked also individually with someone from officials or military persons. In the case of defeat of Kaddafi, Libya will be a country of half-civilised tribes, as in Afghanistan.
  13. My friend took a taxi last week, and the taxi driver thought my friend was glad about PTP. policy. Minimum wage for new graduated BA. 15000 / month. and minimum wage will be 300 baht / day. My friend told him it doesn't matter, cuz cost of living would gain up. It's disappointed why most of Thai people have short-sight. Don't they see, it's big issue, it's easy to say give 15,000 b. / month for BA. yes!! sounds good. How about the old employees? They might get like 8000 - 9000 at start, what if they get like 12000 now? and how about the employees who have higher education? So that's mean the companies have to change whole system payment. Are they ready? and how much does it cost? which mean they gain up price of everything? How about minimum wage 300 baht / day? my friends who have small business are complaining about it now. Deal to the problem of Thai labour wage these days make them turn to hire Cammy, Burmese, or Rohingya. After those people heard the news, they ask for more pay. I can't get the picture how Ms.Yingluck will deal with it. Ofcourse, she (or her brother) has to force, to push til she get what she promise or else, she will screwed up. After read news today, I see how the react of the employers. Please share your thought. FTI against the proposal By The Nation Published on July 12, 2011 The Federation of Thai Industries (FTI), the largest grouping of industrial manfacturers, strongly opposed the new government's policy to raise the minimum wage nationwide to Bt300. FTI chairman Payungsak Chartsutipol said after the meeting today that 513 manufacturers surveyed by the organisation strongly opposed the policy, as this would push up the manufacturing cost. They proposed that the wages should be raised gradually not abruptly, based on the inflation, employers' financial capacity and the economic condition in each province. "Small operators are now comfortable if the minimum wage is raised to Bt200 a day, while medium-sized operators can accommodate Bt211 and large-sized at Bt205," he said. After a meeting today, the FTI issued an open statement to the government, containing the grouping's five stand points. First, the FTI is totally against the Pheu Thai Party's proposal and urges the new government to review this proposal thoroughly as it would affect the overall economy. Second, minimum wages should be adjusted in line with market mechanism. Third, the central wage committee should be given a free hand in setting the minimum wage, without any political interference. Fourth, if the wage hike really happens, the government must come up with measures to assist employers. Fifth, the FTI is ready to participate in any wage-related negotiation, for the benefits of all parties.
  14. So the Thai General Election is nearly upon you/us and I have a couple of questions. I don’t profess to have a good (even average) understanding of the in and outs of the different parties and their stand points, but something that has become apparent is that Yingluck seems to be portrayed as Thaksins clone. So will she be the face and Thaksin be the puppet master behind her government should she get in? Is Abhisit as clean as he makes out? I’m not talking about his hygiene. He seems to be as very little is said about him. I’m not trying to stir up arguments, just a farang cruising for a bit of edimication on the subject. Off the topic of parties: Do people really think that bellowing at people from a PA system stapped to a van at 8 in the morning will make people change their mind? Wastemen.
  15. I wonder if you can be friends with people who have a different point of view in a certain subject (like politic or religious)?
  16. http://www.jpost.com/DiplomacyAndPolitics/Article.aspx?id=220781
  17. http://www.nationmultimedia.com/2011/05/09/national/Thaksin-Ill-return-at-end-of-year-Year-30154905.html
  18. A dubious distinction * Published: 23/06/2010 at 12:00 AM * Newspaper section: Database http://www.bangkokpost.com/tech/technews/39224/a-dubious-distinction Because there isn't nearly enough control over the Internet, the cabinet approved setting up a new office to "prevent and suppress" anything on the Internet that is aimed at or might be aimed at the monarchy; with some help from Mr Orwell, the government decided the office should be called the Bureau of Prevention and Eradication of Computer Crime; Juti Krairiksh, the new MICT (Minister of Internet Censorship of Thailand) explained that any Internet provider who did not instantly comply with his "request" to block a website would lose its licence. Media watchers FACT Thailand said that the number of blocked and blacklisted websites had passed 100,000, making Thailand the first country in the world to hit that goal; since April alone, said a FACT study, the Ministry of Internet Censorship of Thailand (MICT) and the emergency authorities have blocked 65,000 websites, bringing the total of blacklisted sites to 113,000 by June 15, with sites being added every day; the Orwellian Bureau of Prevention and Eradication of Computer Crime has added another layer of Net censoring, supposedly in the name of protecting the monarchy; one new tactic is to censor any site that mentions actual names such as former PM's office minister Jak***ob Pe***ir or the Marxist professor G***s Ung***orn - two of 200 such blacklisted names that are to be wiped from Thai memory like a Russian encyclopaedia on Josef Stalin. How can a government ask for respect from its citizens when the government does not respect the fundamental constitutional rights of the people.
  19. I thought Obama's speech was good and appropriate, addresses many of the challenges we face in 2009. Quotes: "On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn- out dogmas that for far too long have strangled our politics.? ?of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age.? "A day when we cannot ?consume the world?s resources without regard to effect.? He talked of how ?the ways we use energy strengthen our adversaries and threaten our planet,? " a willingness to suspend national ideals ?for expedience?s sake.? "to reject a ?false choice? between safety and American ideals," the Cold War was won ?not just with missiles and tanks,? but by leaders who understood ?that our power alone cannot protect us, nor does it entitle us to do as we please.? It grows instead, he said, ?through its prudent use.? ?To those who cling to power through corruption and deceit and the silencing of dissent, 
know that you are on the wrong side of history.?
  20. How do you think George Walker Bush will be remembered? What do you think was his greatest contribution during his presidency? And what was his worst mistake?
  21. Ok so i'm not Jewish but this guy gets my goat (im drunk but i think that's a legitimate saying). He also claims the holocaust was a myth....what a knob. I don't have much more to say on the matter until im sober.
  22. Welp, What needs to change people? Lets hear from all 4 corners of the globe. Where to start?
  23. CityLife, Chiang Mai 6 June 08 Editorial Pim Kemasingki http://www.chiangmainews.com/ecmn/viewfa.php?id=2201 Politicians in this country are turning my stomach. While the rest of us struggle to make a living, strive to be honest, attempt to conform with the law and try to get on with things, politicians are making it clearer and clearer that they are exempt from any moral or legal restrictions which the rest of us adhere to. And that our votes are all they need from us to continue to suck this country dry with impunity. I haven't written a political editorial for quite a few months now, waiting for things to pan out a bit post coup goverment. But now, so many months on, the Samak Sundaravej government has had ample time to show us its stripes, so I thought it would be good for us to take a closer look at these stripes and see what our votes - though certainly not mine - have put into office. Samak, how I abhor you, let me count the ways: Samak angrily, and on national television, fields uncomfortable, though relevant, questions from the press with a question of his own, "who did you fornicate with last night," he asked a blushing female reporter. Samak, á la Marie Antoinette, tells us peasants to eat chicken if pork becomes too pricey and noodles if rice weighs too heavily on the pockets. Samak astounds historians world wide with his insistence that only one person died 'by accident' during the October 1976 massacre. Even though PhotoShop was then uninvented, I suppose all the pictures of corpses were doctored? And think of all those filthy lying eyewitnesses! Though Prime Minister Surayud Chulanont apologised for the Tak Bai incident where 78 demonstrators were detained and smothered to death, Samak knew better and claimed that they, get this, fell on top of each other and suffocated, because their bodies were weak from Ramadan fasting. Samak's government obviously knows something that we don't, and that is that politicians' sons, nephews, nieces, grandparents, cousins and wives should all join in the family business, creating a unique government of relatives... familiocracy? Samak admires the Burmese junta's practice of merit making and meditation which elevates them in his estimation as good Buddhists?never mind the killings, torturing, false imprisonment and shocking inhumanity of post-cyclone 'relief'. Samak followed Thaksin Shinawatra's super idea of launching a war on drugs which killed nearly 3,000 people without justification or trial. After all, stealing billions from the country is no sin in comparison to that of a teenage meth addict. Samak's government has done more shuffling the past three months than in most Las Vegas casinos. Oddly, qualified people with years of experience are shuffled to the back of the deck and cousins, sisters, parents and wives of banned politicians - with no expertise further than the ability to be related to the right people - are brought to the fore. Samak returned the honour of second-lieutenant back to a guy who, though acquitted, we all know is guilty of many sins. But then again, his father is very good at brown nosing the relevant person. Samak's government has spent a phenomenal amount of time and energy in trying to change a few clauses in the constitution - coincidentally, these crucial clauses will help strengthen the position of his Puppet-Master-Who-Can-Not-Be-Named. Samak spat his dummy and created national headlines when he heard of a fortune teller (yes, one of those terribly important people in politics who read horoscopes) foreseeing the downfall of his government. Samak found huge chunks of time to taste and critique food from the kindly folks all over Isaan, who cast him their votes, but only managed to squeeze in a short visit to the three strife-nidder southern provinces, whose votes were reserved for the better looking PM wannabe. Let's not be too harsh on Samak, after all, this list would be a lot longer if his master was at the helm. But then he is, isn't he? Oh dear, it is all most confusing. So while politicians are back stabbing and back slapping, the rest of us simply get on with it. It is us after all that makes this country tick. Let the boys play house and play war in the capital, we know that they are no help to any of us. So we work, we play, we live and we do our very best. What else can we do? To the honest hard working Khun Thais who endure, you have my sympathy.
  24. SHADOWBOXING The 99 days in which not much happened BKK Post, 3 June 08 KORN CHATIKAVANIJ I spent many minutes in front of my laptop trying to decide which issue I should highlight this week. The past few days have seen the shadow cabinet address so many important issues that it would be a shame to omit a single one. We summarised our thoughts as to what needs to be done to move the country forward in a presentation Khun Abhisit made to the press on Thursday, based on the theme of 99 days of rule under the current government. I think most people would agree that the first 99 days in power have been a big disappointment, even given the relatively low expectations people had for the current cabinet. As the government's shadow, we had, during the past 99 days, pressed the government into action on three main issues; the economy, through a 50-billion-baht supplementary budget; the food crisis, through the call for the government to monetise the windfall profit from the 2.1 million tonnes of rice stock that was inadvertently accumulated through the previous price guarantee schemes. Finally, the submission of a bill designed to help create a local vehicle through which the problems in the deep South could be better managed. The government ignored all three - despite direct sit-down talks between shadow ministers and their government counterparts in all three cases. As a result, Khun Samak was left wondering why education was still far from free - something we told him could have been solved had the government agreed to the 17.5-billion-baht supplementary budget allocation as part of the package proposed by us. In addition, the supplementary income proposed in that same package for the elderly would by now be directly helping those in greatest need at a time when the cost of living continues to accelerate. As for the South, the government chose not to consider our proposed law, even though Interior Minister Chalerm Yubamrung made a big show of acknowledging in parliament that it was a sensible proposition - mere lip service to a problem that is not going to just go away. The rice problem was addressed vigorously by the shadow cabinet and, other than repeated calls by us to the Commerce Minister that he should not try to interfere with a market he clearly did not understand, we suggested that the government sell the 2.1 million tonnes of stock so that the proceeds (estimated profits of 25 billion baht) could be used to ease the cost of raw materials needed by farmers - or indeed any other group in distress. This was ignored - and so far only 1,500 tonnes, a fraction of the stock, has been bagged and sold to a few lucky buyers. Meanwhile, farmers now are paying more than 20,000 baht a tonne for fertiliser, with every prospect that the selling price for their rice crop come harvest time at the end of the year will lower than it is today. So many opportunities - all frustratingly wasted. Yet the worst is probably still to come. The government, and especially the finance minister, seem not to have grasped that the world has moved on from the deflationary environment before the election to a much more harsh inflationary one. Put simply, before we were complaining that in terms of wealth we were standing still - now we are getting poorer by the day, because our income is not keeping pace with cost of living. In this environment, the government should be less concerned with growth than it is with stability, because, without the latter, consumers will not spend and firms won't invest. The government continues to run around trying to put out minor fires (increasingly determined by which "mob" arrives at the minister's front door) without taking time to understand and address the root causes of each problem. Take the response to the oil crisis - the kind-looking and good-humoured Minister of Energy Poonpirom Liptapanlop appears to have worked harder than most to deliver some relief to varied interest groups, but she is severely constrained by the structure of the industry, especially by the role of PTT. Everytime there is an energy crisis, anti-PTT feelings rise. This time around, a small concession valued at about two billion baht over six months was eked out of refineries owned by PTT. In the meantime, there was no attempt to address the root cause of why refinery margins for diesel have reportedly increased to more than US$40 per barrel - from an average of $15 per barrel in 2006 - while refinery costs remain relatively fixed at below $4 per barrel. I was once again having to give my opinions to the press regarding the Democrat position on the status of PTT and, again, I repeated that in my opinion we support the listed status of PTT. However, and this is also a long-standing opinion, many of the problems we face today are caused by the poor legal and corporate structure that all in all leads to the inevitable compromise of good governance. PTT is owned 52% by the government so the public has every right to demand that the company puts the interests of the public first. However, it is also listed on the stock exchange where the stated fiduciary duties of firms are to look after shareholders interests. Moreover, the PTT has for years enjoyed the best of three worlds - monopoly status, profit maximising mandate of a listed firm and the exemption from competition law as a State Enterprise. No wonder then that the general public as well as customers of PTT are intensely resentful of the firm. Worst still is the poor manner in which PTT was privatised. It has given privatisation a bad name in Thailand. The whole process went awry from the start because of the bad tradition in Thailand of the process of each privatisation being managed by the privatised SOE itself rather than the government. (hey kiddies, only 2% of Khun Thai are invested in the stock market) Urged on by investment bankers who want the privatised entity to be potentially as profitable as possible, it is no wonder that everything is done to serve the interest of the firms, rather than to ensure the protection of broad public interest. In the long term this is a net negative for the development of capital markets as governments are forced to intervene for small concessions from these firms, each time chipping away at the level of confidence of investors. Politicians are apt to ignore capital markets in favour of the broad public and, while the logic of this is inescapable, we do also understand that one of the reasons why Thai corporates are uncompetitive is that the cost of access to capital is too high. The recent announcement by a leading Thai bank to increase interest rates - naturally a bigger increase for loans than deposits - means that gross bank margins of almost 5% are much higher than our peer group benchmark. Meanwhile, higher political interference risk premiums means that the PE ratio (meaning share price) is one of the lowest in the region. So, instead of running around putting on a public show while essentially achieving nothing, the ministers need to look hard at their portfolios and ask the harder question of what it is that needs to be structurally altered in order for Thailand to become more efficient, with consumers as beneficiaries through lower prices and higher quality. I'll expand on this in my next installment. Korn Chatikavanij is shadow finance minister. He can be reached at [email protected] *** I't readily apparent that Khun Korn has to much "common sense" to ever be appointed a Minister in Thailand's Gov.
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