The government has waived the duty for chicken butchery up to now.

Poj Aramwattananon, vice chairman of the Board of Trade of Thailand, said yesterday that the nine associations urged the government to reveal some details of the act so that all actors in the supply chain – including small and large chicken farmers and feeders, slaughterhouses, butcheries, traders and exporters – as well as consumers can be assured that they will not be impacted by the higher financial burden.

The bill is now under consideration by the National Legislative Assembly.

Poj said that if the law is enforced, the price of chicken will increase by Bt3.20-Bt3.50 per kilogram. The price of chicken at the farm gate is Bt65 per kilo.

It will also encourage chicken breeders to use illegal slaughterhouses more rather than legal, high-standard slaughterhouses, which could cause problems with the sanitation of chicken meat.

The requirement of a butchery duty will also create difficulties for Thai chicken exports, as most rivals, including Brazil, China and Malaysia, do not collect the duty, while the Philippines collects only one satang per chicken.

Kukrit Arepagorn, manager of the Thai Broiler Processing Exporters Association, said Thai chicken exports could face tougher growth with the higher financial burden from the collection of a butchery duty that others don’t have, while the price of Thai chicken is slightly higher than rivals.

Low growth expected

After Brexit – the vote for the United Kingdom to exit the European Union – Thai chicken exports could see small growth due to the weakening of the euro, while the UK is a larger market for Thai chicken exports among the EU countries.

For this year, Thai chicken exports are expected to grow only 2-3 per cent to 700,000 tonnes worth Bt91 billion, from Bt88 billion last year.

The small export growth was due to EU customers calling for Thai chicken exporters to lower prices as the euro is sinking.

Thai chicken shipments to the EU and UK could also be impacted in the future, as Thai chicken has a quota for about 270,000 tonnes in the EU market each year.

About half of the chicken has been exported to the UK.

Veerapong Panchauathanakul, president of the Chicken Raisers Association, said everyone involved in the chicken industry would be impacted by the new act, as businesses will incur higher expenses and need to pass them on to consumers.

Each week, about 30 million chickens are killed – 60 per cent for domestic supply and the rest for export. The chicken industry is worth about Bt300 billion. it employs about two million workers.

Tawin Apidejthanarak, a chicken farmer from Chaiyaphum, said small chicken farmers may need to go out of business if they have to face a higher financial burden and tougher competitiveness in the market.

The new practices were initiated in response to the government’s policy to drive community-based and sustainable tourism.

Nalikatibhag Sangsanit, director-general of DASTA, said the organisation had cooperated with the Thammasat University Research and Consultancy Institute (TU-RAC) to conduct research on the multiplier effects of community tourism. The study covered six areas, under supervision of DASTA: Koh Chang in Trat province, Pattaya, Sukhothai, Loei, Nan and Suphan Buri.

The study found that the six areas were able to increase income if they followed key strategies and management methods suggested by DASTA, such as attracting development, applying a customer-base approach to services, and cooperation among stakeholders in each community.

“The result was that the six communities increased their incomes after using DASTA’s management guidelines,” Nalikatibhag said. Moreover, tourism-based employment increased.

“DASTA was established to developed attractions and push quality tourism,” he said, adding that it would continue to pursue those goals this year.

DASTA aims to see its guidelines implemented in at least eight clusters nationwide, in 41 provinces. The eight clusters are being planned by the National Tourism Committee.

To expand the effectiveness of the guidelines and help increase tourism income at other communities, DASTA will introduce its practices to more areas while promoting community tourism in more parts of the country.

Those eligible are Thai citizens aged 18 years and over, born before August 16, 1998, and earning not more than Bt100,000 a year or unemployed.

Currently, there are about 10 million low-income earners on welfare, with 8 million receiving the allowance for the elderly and the rest other benefits from the government, Pornchai Theeravech, deputy director-general of the Finance Ministry’s Fiscal Policy Department, said yesterday.

BAAC estimates 20 million low-income earners – defined as Thai nationals aged 18 and over, earning not over Bt100,000 a year or unemployed – among the country’s 65-million population.

Pornchai said the registration would support the government’s policy to help low-income earners access welfare that matches their needs.

Now, the government provides welfare through an old database and some of the information does not represent the current situation.

For example, about 100,000 of the 8 million recipients of the elderly allowance have already died but the money is still paid out.

The information from the low-income earners registering through the three state-owned banks will update the database and also help the government to design benefits to match their needs.

“However, we cannot say what the welfare will be after the registration is completed. They will be designed after we get more information from the registration system,” he said.

Chatchai Payuhanaveechai, president of GSB, said the bank targeted up to 2 million low-income earners registering at its 1,050 branches nationwide.

They have to show their identity cards at the branch and also provide information on their income, assets and liabilities. Then they will get a receipt so that they can check on October 1 at the Revenue Department’s website whether their registration was completed.

Wanchai Charoenchaimongkol, director of the office of informal debt management at BAAC, said that up to 3 million were expected to register at its more than 3,000 branches.

“If more people than the estimate are interested in registering, the bank also has the capacity to serve the demand,” he said.

Jitti Supakamolsanee, senior vice president and head of cash management products at KTB, estimates about 500,000 Thais registering at its 1,216 branches nationwide.

Porchai said: “We will open registrations and update the information every year after the first time this year.”

The project is part of the Highways Department’s 2017 action plan, which includes the eastern and northeastern sections, stretching from Bangkok to Rayong and Aranyaprathet in Sa Kaew, and from Laem Chabang Port to Nakhon Ratchasima via Prachin Buri, Transport Minister Arkhom Termpittayapaisith said yesterday.

After a seminar held by the department seminar on the development of Thailand’s motorway network , Arkhom said the investment model to be applied to the Nakhon Pathom-Cha-am project was being considered, including the details on return on investment.

The country’s Intercity Motorway Development Master Plan 2017-36 was finalised last November and included in the 12th National Economic and Social Development Plan.

Under the plan, the country will invest about Bt2.1 trillion to develop 21 routes with a combined length of 6,612km.

The seminar was aimed at allowing participants in the government and private sectors to suggest ways to make the master plan more efficient and to mobilise funds for the projects.

Besides opening the bidding to private participation, the Transport Ministry will raise capital via an infrastructure fund called the “Thailand Future Fund”, by transferring assets of two routes in service to the fund.

They are the Bangkok-Bang Pa-in Motorway or “Motorway No 9” and the Bangkok-Chon Buri Motorway or “Motorway No 7”.

The Cabinet on Tuesday approved the establishment of the Bt100-billion Thailand Future Fund with an initial contribution of Bt10 billion backed by the Finance Ministry.

The proceeds from launching the fund will partially finance two projects approved by the Cabinet earlier that are now under |construction. They are the 9|6km Bang Yai-Kanchanaburi (Motorway No 8) and 196km Bang Pa-in-Nakhon Ratchasima (Motorway No 6) routes.

These two projects are about to be proposed to the Public Private Partnership Committee for holding an auction to operate and maintain them under the PPP fast-track scheme.

“The road network is still in need, as it’s outstandingly convenient with door-to-door delivery, given that there is high demand for road transport. Therefore, motorway development is in the focus of the government,” Arkhom said.

The highways will be able to enhance Asean connectivity with neighbouring countries, he added.

The Rama III-Dao Kanong expressway project under the responsibility of the Expressway Authority of Thailand might also be transferred to the Thailand Future Fund. That expressway will be linked with the motorway project from Dao Kanong to Wang Manao in Ratchaburi.

Construction stocks skyrocketed by 2-5 per cent in response to the approval of the Thailand Future Fund, apparently reflecting investor confidence in the materialisation of the infrastructure projects.

Global demand for oil will grow by 1.4 million barrels per day (bpd) this year to 96.1 million bpd, the International Energy Agency (IEA) said in its monthly oil market report, revising up last month’s forecasts of a 1.3 million bpd rise.

While predicting a “return to balance” in overall “big picture” market direction, the IEA said “the existence of very high oil stocks is a threat to the recent stability of oil prices.”

Last month the agency had warned significant price rises were unlikely given that “there is an enormous inventory overhang to clear.”

The IEA noted crude prices had edged off an early June peak above $52 dollars per barrel to trade in a $45-$50 range — a stark contrast to the nearly daily price falls earlier this year.

“Our underlying message that the market is heading to balance remains on track, but the modest fall back in oil prices in recent days to closer to $45/bbl is a reminder that the road ahead is far from smooth,” the IEA concluded.

“The adjustments to our data this month suggest that little has changed with the market showing an extraordinary transformation from a major surplus in 1Q16 to near-balance in 2Q16,” the report added.

Oil prices, which slumped below the $30 mark in January, rebounded earlier this week from two-month lows as an Opec forecast pointed to an easing of global oversupply.

US benchmark West Texas Intermediate for August delivery Tuesday jumped $2.04 to $46.80 a barrel on the New York Mercantile Exchange, while in London, Brent North Sea crude for delivery in September added $2.22 to $48.47.

’Ominous investment gap’

In its own July report, Opec had forecast the global supply glut would ease this year and next, as producers outside the cartel, particularly the United States, cut production.

The 14-member cartel, which provides about one-third of the world’s crude, has squeezed competitors in recent months by keeping the taps open, saying June production rose by 264,000 bpd to an average 32.9 million barrels bpd.

Opec predicted global demand growth would pick up in 2017 to allow the market to remove excess stocks.

For 2017, the IEA forecast a 1.3-million-bpd increase to 97.4 million bpd, largely thanks to demand in non-OECD countries, led by India and China.

Demand in India was forecast to rise faster than anywhere in 2017, by 280,000 bpd, whereas “the main restraint on recent Chinese demand data continues to be the weakening of the domestic economy, with official estimates of economic growth easing.”

The IEA saw Europe as having been the “saving grace for oil demand,” with growth reaching a five-quarter high in the second quarter of this year.

But it added this was “unlikely to last,” given economic “precariousness” after Britain’s vote to leave the European Union, a result which “added to the uncertainty.”

Overall, the IEA indicated there remained “an ominous investment gap building up in the oil industry that might, depending on how quickly today’s record high oil stocks are eroded, create the conditions for sharply higher prices over the medium term.”

The agency also highlighted its finding that the Middle East’s market share of global oil supplies had risen to 35 per cent the highest since the late 1970s.

– AFP

Nielsen reported yesterday that mainstream media were still being affected by the fragile domestic economy, as big companies like Unilever (Thai) Holdings, Toyota Motor Thailand and Beiersdorf (Thailand) decided to cut their advertising budgets from last year’s spending.

Advertising expenditure via analog TV stations fell by 11 per cent to Bt26.02 billion in the first half, spending via cable and satellite TV dropped by 17.4 per cent to Bt2.44 billion, and digital-TV ad spending decreased by 9.03 per cent to Bt9.57 billion.

Newspaper advertising saw a drop of 17.43 per cent to Bt4.93 billion, while outlays on magazine ads were reduced by 28.15 per cent to Bt1.5 billion.

Radio ads were almost stagnant with 0.57-per-cent growth.

However, out-of-home media, which consist of cinema, outdoor and transit ads, saw higher growth during the first six months, while Internet advertising surged by 77.56 per cent to almost Bt850 million.

Media Insight noted that the first half was not a good time for the automotive industry, so car companies had to tighten their belts by cutting advertising budgets.

Pawat Ruangdejworachai, vice president of Media Insight, a subsidiary of Media Intelligence, which is a strategic partner of Japanese public relations and advertising agency Hakuhodo Inc, said yesterday that in the first five months, vehicle sales in this country dropped by 6 per cent.

Major carmakers such as Toyota decided to cut their advertising budgets and conduct promotional campaigns instead in a bid to boost sales in the remaining months. From January to last month, Toyota Motor Thailand spent Bt1.22 billion to publicise its brands and products via different media, down from Bt1.48 billion last year.

Pawat said other key product categories such as soft drinks, insurance, telecommunications and mobile phones also tightened their belts.

He believes that while such trends continue, the overall advertising industry will remain in negative territory.

Ittirit Kinglake, president of the Tourism Council of Thailand (TCT), said yesterday that the country could reach those lofty records if it can push the right marketing efforts as well as initiate more tactics.

The tourism industry has recovered rapidly from the horror of the Erawan Shrine bombing last August and violence overseas. However, there are still many challenges lying ahead in the coming year including global economic instability and unpredicted political issues internally.

“The TCT feels that although the agency [TAT] is aiming too high, those are the projections so far. If there are no bad factors to come, the country has the opportunity to realise those high hopes,” he said.

Eric Brand, director of operations at the Arnoma Grand Bangkok Hotel, said Thailand would remain a popular destination for international tourists, judging from advanced bookings made for the coming high season.

Hotels in Bangkok will operate at an average occupancy rate of up to 90 per cent in the final quarter this year, he predicted, about 5-10 percentage points up from the last peak season.

“Even in the current low season, many tourists are coming to Thailand. Many Europeans shifted their vacations from the Middle East to Thailand, while Asian travellers are also avoiding going to Europe,” he said.

According to Ittirit, British voters’ decision to separate from the European Union will reflect on the inbound business only for a short time, as people may suspend their overseas trips. Once the United Kingdom’s economic structure gets back on track, tourists will start going overseas again.

TAT yesterday announced its action plans for 2017 to the private sector, after spending a week brainstorming and strategising.

TAT governor Yuthasak Supasorn said the agency would start shifting the structure and direction of the national tourism industry towards a new value-based proposition to position Thailand as a quality leisure destination.

The new policy is designed to bring tourism, now recognised by the country’s leaders and policymakers as one of Thailand’s most successful economic pillars, in line with the 20-year reform programme called “Thailand 4.0” being charted by the government under the vision “Stability, Prosperity and Sustainability”.

Tourism is one of seven industries considered the backbone of the emerging “digital economy”. It also has enormous potential to contribute to the creative development of sub-sectors such as health and wellness, culture and heritage, and the natural environment, TAT believes.

The new model will strive to transform Thailand’s comparative advantage into a competitive advantage. TAT will develop a broad range of marketing-communications materials in line with the objectives to give greater prominence to the “unique local experience of Thailand” on the world stage.

The “Amazing Thailand” brand will remain in place, supported by powerful narratives called “Discover Amazing Stories in Amazing Thailand”.

For next year, TAT has selected Chiang Rai as a model for sustainable tourism development.

The foundations of green growth – economic, social and environmental balance – will be laid first in Chiang Saen district and later gradually expanded across the province.

This year, Thailand will| be the host country for the annual World Tourism |Day marked on September 27, under the aegis of the |UN World Tourism Organisation.

Next year, Thailand will also host the summit of the World Travel and Tourism Council in April and the Destination Wedding Planners Congress in May.