Thread: Foreign Investors Angry With Thailand's Flood Response

Originally Posted by SteveCM

Mr Kittiratt said the government would go ahead with its planned policy of raising minimum wages, which is set to begin April 1, 2012, postponed from Jan 1. He said the government was not too concerned about companies threatening to leave or not invest because of higher wages, as the country must move up the value chain. His notion is that companies would want to maximise output and therefore invest in the skill development of their labour force, which would be a good thing for Thailand.

Top policy

But the key is in the education of the isaarn children to provide a skilled equal opportunity workforce.

Then if companies want to leave, fine, but they will be replaced by wiser sages.

Thailand needs to teach Critical Thinking skills as apposed to the here and now mindset.

You can't teach critical thinking skills when practising critical thinking can get you a 20 year jail sentence.

^Thought crime legislation puts a damper on thinking, for sure.

Originally Posted by ralphlsasser

Thailand needs to teach Critical Thinking skills as apposed to the here and now mindset.

Thailand needs to provide its children with a a good basic education first....then the rest will follow.

Seems, er.... one particular building was the main objective to be spared from flooding, the rest of the country be damned. Foreign investors are so pussy- whipped though, I doubt this will deter the future of investment.

An entire nation that revolves around wholesale whoring and an almost psychotic idol worship.

^I sure they don't worship taksin that much.

^ hahaha! Nice one!

Originally Posted by LooseBowels

But the key is in the education of the isaarn children to provide a skilled equal opportunity workforce.

It depends on whether the vast majority of issarn children actually want to be educated beyond the here and now!

Many can state that those of Bangkok much prefer the tried and tested method of tea money payments to enter good schools and the cost of education to include a passing grade regardless of the efforts of young somchai!

Is there any reason to suggest that the North East would be any different?

Originally Posted by KAPPA

an almost psychotic idol worship

Yes, I think that describes it well.

Flood-hit auto industry gets relief with tariff exemption - The Nation

BUSINESS
Flood-hit auto industry gets relief with tariff exemption


Nalin Viboonchart
Wichit Chaitrong
The Nation
November 30, 2011



The government is offering much-needed respite to the auto industry with an exemption from import tariffs for eight months on completely built units (CBU), parts and machinery in a bid to save the jobs of more than 200,000 workers.

While Honda Automobile (Thailand) is the only company to benefit from the CBU imports as its assembly plants in Rojana Industrial Park are inundated, others will enjoy zero tariff on the import of parts and machinery. The Finance Ministry says without the waiver, Honda would have had to pay 80 per cent of car value as CBU import tariff. Tariffs on parts range from 0-30 per cent, while that on machinery is 0-5 per cent.

Honda executive vice president Pitak Pruittisarikorn yesterday hailed the decision, which will ease the supply-chain disruptions as several suppliers are recovering their flooded plants.

"I believe the government understands the tough situation the automotive industry is facing. Without any help, some workers will lose jobs," he said.

Honda will work out the number of vehicles to be imported and the number of units to be imported from each of the other manufacturing sites. Some difficulties remain as each site caters specifically to demand in their local markets, but the imported CBU must be the same models produced here. He expected the imported units would arrive in Thailand within a month.

Honda's assembly plants, which have suspended production since early October, can produce 240,000 units per annum, with models ranging from City, Jazz, Civic, Accord and CR-V. The firm shifted 3,200 units out of the site, leaving some 800 submerged.

Pitak said the company is working out when the plants could resume operations, as water has been completely drained out since last weekend.

Honda's North American plants will return to normal production by tomorrow. Thailand is a large supplier of computer chips that control engines and other functions.

Following the Cabinet's |decision on the waiver until June 30, 2012, the Office of Industrial Economics will look into the details of tax exemption and import permits.

Government Spokeswoman Thitima Chaisaeng said the Finance Ministry will cut the import tariff for truck assemblers by 10-20 per cent. |The Labour Ministry and Immigration Department are being instructed to ease rules and regulations on work permits for flood specialists.

The Honda CBU deal must be good for the Philippino plant just next door from my house.

They went on decreasing production gradually this 2 last years and were looking to close the plant soon.

Eventually a revival for them...

Got a good friend in there,will ask him if they increase again production...

Hmm. Might be a good time to import the Triumph Stag, I've had my eyes on for years. No tariffs! Can it be true?

Originally Posted by SteveCM

but the imported CBU must be the same models produced here.

I new it was too good to be true!

Originally Posted by Rocksteady

Originally Posted by SteveCM

but the imported CBU must be the same models produced here.

I new it was too good to be true!

If the rules were too simple there would be no opportunity for graft.

Interesting Op Ed last Sunday, B Post, wishing the world Bank would be able to make loans so as to eliminate the inevitable, er.. siphoning. ( At least on Thailand's end. )

Originally Posted by walkabout

Originally Posted by LooseBowels

Originally Posted by SteveCM

Mr Kittiratt said the government would go ahead with its planned policy of raising minimum wages, which is set to begin April 1, 2012, postponed from Jan 1. He said the government was not too concerned about companies threatening to leave or not invest because of higher wages, as the country must move up the value chain. His notion is that companies would want to maximise output and therefore invest in the skill development of their labour force, which would be a good thing for Thailand.

Top policy

But the key is in the education of the isaarn children to provide a skilled equal opportunity workforce.

Then if companies want to leave, fine, but they will be replaced by wiser sages.

Isaan education, 3G net access to further knowledge, computers for all children - qualified teachers - could bring Isaan if not Thailand to Singapore. (BTW, Singapore is richest country in the planet PPP, give or take some oil countries)

Sorry, but this is a serious comment, not a trollish one. Thailand's educational problems are cultural. Much of it is another by-product of that non-confrontational save face at the cost of reality culture. During 4 years of teaching at a Thai Government school, I've not seen even one child held back (forced to repeat a grade) or forced to do remedial work or attend summer school, even though some of them (mostly boys) seem incapable of learning anything, or even sitting still long enough to try. There is absolutely no formal disciplinary system whatsoever in the school, and promotions to the next level are given based on age, not achievement.
I'm sure the private schools here realize that confrontation in the form of discipline and the threat of deliberately humiliating a child by forcing him to repeat a grade (and being publicly shamed in front of his friends) are necessary to motivate some students.

Originally Posted by BobR

I'm sure the private schools here realize that confrontation in the form of discipline and the threat of deliberately humiliating a child by forcing him to repeat a grade (and being publicly shamed in front of his friends) are necessary to motivate some students.

Absolutely agree with you, Bob! I've been teaching here for 15 years and its all a sham! western teachers are generally threatened with not having their contract renewed at the end of a year unless they bump up grades and submit false statements of achievements!

Though there have been some students who are willing to apply themselves and meet standards the majority soon notice that little somchai at the back, who never does homework, study for exams and often ditches class is given the same grade as them. This then triggers a sense of 'why bother to study?' from many in class!

Thailand has to undergo a huge cultural seachange to progress from low paid grunt working futures if they wish to move up from feudal surf status!

Flood disaster worsened by corruption, Thai business leaders say
Dec 11, 2011

Bangkok - Thailand's flood disaster has been made worse by government corruption, business leaders have complained, a news report said Sunday.

Thai Chamber of Commerce chairman Pongsak Assakul was quoted by the Bangkok Post as saying the flooding was one of the worst crises ever to hit the kingdom.

'And state corruption made it worse,' he said.

The government's Flood Relief Operations Command has been accused of corruption related to its management of donated items and its purchase of relief supplies.

Members of the chamber agreed at a meeting Saturday that they would no longer pay bribes to state officials and they would closely monitor government projects for corrupt practices.

The chamber also declared September 6 as Corruption Suppression Day.

The date commemorates the death on September 6 of Dusit Nontanakorn, who spearheaded several anti-corruption campaigns in recent years.

Overall, Thailand sustained about 21.3 billion dollars in flood damage, according to the World Bank, while 689 people have died in flood-related incidents since July 25.

monstersandcritics.com

Originally Posted by Thai Chamber of Commerce

Corruption Suppression Day.

First plunge in exports in 25 months - The Nation

FLOOD IMPACTS

First plunge in exports in 25 months

Petchanet Pratruangkrai

The Nation December 20, 2011 2:01 pm


Thailand's November exports showed the first year-on-year plunge in two years, as the export value slumped 12.44 per cent to US$15.98 billion.

According to the Commerce Ministry, supply-chain disruptions took a heavy toll on the manufacturing sector in the month and attributed chiefly to the fall.
The monthly decline was the first time since October 2009.

In the month, imports also dropped 2.43 per cent to $16.87 billion, resulting in a small trade deficit.

Thai exports during the first 11 months grew 19.04 per cent to $211.8 billion. Imports went up by 25.47 per cent to $209.34 billion. The country locked in a trade surplus of $2.46 billion in the first 11 months.

"Exports in December is expected to continue a decline due to flood impacts. Still, for the full year, exports growth should be at least 15-20 per cent this year," said Deputy Commerce Minister Siriwat Kajornprasart.

well the bad news has been confirmed by a few CEOs and CFOs I recently talked to who were affected by the flood

their customers are now asking Thai companies not to expand locally but to take their business else where, notably in China

expansion in the North East is also not feasible because of the lack of infrastructure and land speculation for industrial park

Bangkok Post : BoI OKs recovery measures

FLOOD RELIEF
BoI OKs recovery measures

Expecting B12bn hit to yearly tax revenues

• Published: 30/12/2011 at 12:00 AM
• Newspaper section: Business

The Board of Investment (BoI) yesterday gave the green light for measures, including a corporate income tax extension, to help flood-hit companies recover.

A worker makes preparations for the Board of Investment’s annual fair, beginning Jan 5 at Impact Muang Thong Thani. The fair’s theme is ‘‘Going Green for the Future’’.

The privileges are divided into two categories to cover only factories whose investment privileges have not yet expired.

First, projects which are subject to a tax-exemption limit will be entitled to new eight-year tax exemption.

If the projects continue to invest in the same province that was affected by the flood, tax will be waived at a rate of 150% of the new investment, plus the effective value of tax exemption they are already eligible for.

Tax exemption for those deciding to relocate plants to other provinces is given at 100% of investment plus the effective value of tax exemption.

Second, factories without a tax exemption limit will be offered an extra period of corporate income tax exemption.

Projects with privileges remaining for no more than three years will see the period extended up to eight years.

Projects with privileges remaining for more than five years will be entitled to extra privileges.

A 50% tax rebate will be given for two years to those with privileges remaining for more than five to six years, with a 50% tax rebate for four years for those with privileges remaining for more than six to seven years, and a 50% tax rebate for five years for those with privileges remaining for over seven to eight years.

The BoI also resolved to provide an eight-year tax waiver to industrial estates investing in the flood-prevention system. However, the maximum tax waived must not exceed 200% of the investment.

A total of 7,510 factories nationwide were inundated, of which 1,488 have been given BoI privileges.

However, only 668 factories will be eligible for the extended tax waivers, 487 of which qualified in the first category of privileges and 181 in the second.

The decision would incur a loss of tax revenue of 12 billion baht a year, according to the Finance Ministry's estimate.

BoI secretary-general Atchaka Sibunruang said 800 other companies affected by the flood will not receive new incentives as their privileges had expired. Nonetheless, they would benefit from the government's flood relief measures.

Businesses are required to submit their applications by the end of next year.

The Board of Investment yesterday approved investment applications for 18 projects valued at 29.69 billion baht in the alternative energy, service and infrastructure sectors, including a 6.92-billion-baht proposal for Thai Airways International Plc to purchase two Airbus SAS 330-343 aircraft.

Eight of the projects, worth 7.58 billion baht, were in solar energy, while five infrastructure projects were worth almost 10 billion baht.

Applications for investment privileges this year totalled 1,847 projects worth 663.6 billion baht, a 32% increase from the BoI's previous estimates of 500 billion baht.

The number of projects increased by 21% compared to last year's 1,524 projects, while the value of investment increased by 61% compared to 412 billion baht last year.

Foreign direct investment (FDI) applications this year were valued at 390.92 billion baht, a 67% rise from last year.

FDI applications totalled 1,019 projects during the period.

Most of the investment came from Japanese companies, with 543 projects worth 187.75 billion baht, a 82% increase from last year.

"We will see a positive trend next year, with the government's efforts to bring back confidence, starting with the BoI Fair 2011 that will be held on Jan 5," said Industry Minister Wannarat Channukul.

The BoI estimates applications next year to total 600 billion baht, with the focus on the bioplastics, processed agriculture, alternative energy, high technology, environmentally-friendly, medical tools and para rubber sectors.

"We were considering between 500 billion and 600 billion baht, but since this year's applications are high, we settled on the latter figure. But we want to focus more on the quality of the projects [rather than the investment value]," Dr Atchaka said.


Writer: Nanchanok Wongsamuth
Position: News Reporter