The extra revenue to the Finance Ministry gives the government the fiscal status to accommodate the fiscal policy to enhance the economy, Pimonwan Mahujchariyawong, deputy managing director of KResearch, said yesterday.

The bidding for two telecom licences on the 1,800-megahertz spectrum last year added Bt80.78 billion to state coffers. The licences are for fourth-generation wireless broadband service.

The National Broadcasting and Telecommunications Commission has already transferred the first instalments of both winning bidders, Advanced Info Service and True Corp, totalling Bt40.29 billion, to the Finance Ministry.

The auction of two 900MHz licences last year gained Bt76.3 billion from only one winner, True Corp.

The other winner, Jas Mobile Broadband, failed to pay the initial upfront fee by the March 21 deadline, thus forfeiting the licence.

True recently paid the first instalment of Bt8.04 billion for the 900MHz licence.

The additional revenue will help keep the budget deficit at 2.9 per cent this year, while the ratio of public debt to gross domestic product will stay below 50 per cent, KResearch said.

The research house has maintained its forecast for GDP growth at 3 per cent this year after the government launched more economic stimulus packages.

The government recently announced five stimulus measures.

The first is a supplementary budget of Bt56.28 billion within the 2016 fiscal budget, resulting in Bt39.40 billion in funds to inject into the economic system.

The second measure is the Bt70-billion Pracha Rath residential project.

Pimonwan said project financing for developers that want to build Pracha Rath residences will contribute more to GDP than mortgages because there is still existing inventory to be sold, while project financing is for new residential developments.

KResearch sees about Bt20 billion in project financing this year.

Under the Bt70-billion Pracha Rath scheme, Bt30 billion is for project financing. Krungthai Bank, the Government Housing Bank and the Government Savings Bank are the lenders.

The remaining Bt40 billion is for low-income borrowers. GH Bank and GSB oversee this lending.

The other measures are tax incentives for Songkran spending, the new round of the Village Fund scheme and the registration of low-income citizens to target aid to them.

The five measures are expected to contribute Bt60 billion to Bt80 billion, or 0.4-0.6 percentage point, to GDP growth.

This should offset factors that will hurt GDP – drought, lower exports and delayed private investment.

The drought should end this quarter but if the situation drags on to next quarter, prices of agricultural products and consumption will be more affected and that will increase pressure on GDP growth, Pimonwan said.

Private developers, which have a stock of low-priced housing on their books and want to develop new residential projects, will benefit from the scheme, he said, adding that other winners include construction-material and home-decoration businesses.

However, major risks remain, Nonarit stressed yesterday.

Some low-income earners may buy houses under the scheme despite not being able to afford them and having no repayment capability, or not thinking thoroughly about the advantages and disadvantages of a home purchase.

The debt-to-service ratio for the income group lacking financial capability could rise to 50 per cent, while the appropriate level is estimated at 20-40 per cent, the TDRI research fellow said.

The main issue that many low-income earners fail to consider in making a home purchase is that they are taking on a long-time debt burden of about 30 years.

They could face unexpected adverse situations in the future, leaving them unable to meet their repayments during an economic downturn, forcing them to relocate and live with relatives, for example he said.

Another group that could find things difficult is the rental segment, which could lose clients, he added.

Economically, “forced” assistance from businesses to purchasers may not have any overall impact, as “producers” – in this instance, the developers – could always pass the burden on to other consumers via higher prices, Nonarit said.

Personally, he said he expected the Baan Pracha Rath policy would have a more positive impact if the government launched measures to provide buyers with knowledge and understanding as a means of preparing them financially and fundamentally for being home-owners.

He also urged the government to consider the design of Baan Pracha Rath homes, ensuring that low- income earners could live in them for the rest of their lives, as most of them would not be able to afford another new home. Meanwhile, as of Tuesday, the number of applications for housing loans under the Baan Pracha Rath project was 51,409, for loans worth Bt51.337 billion.

Some 31,352 people seeking loans worth Bt34.528 billion applied at the Government Savings Bank (GSB), and 20,057 applicants seeking Bt16.809 billion applied at the Government Housing Bank.

“We estimate that 60 to 70 per cent of the total house-lending value is likely to be short-listed for getting the right to borrow under this programme. Meanwhile, the qualified customers are expected to be announced within the next 30 days,” said GSB president Chatchai Payuhanaveechai.

“If the total value for qualified customers is more than the allocated budget of Bt20 billion, we will propose that the bank’s board committee approve increasing the amount to cover the surplus demand. However, if the value is less than what has been allocated, the bank might open a new round of applications for customers who are still interested in the programme,” he added.

The Mall Group’s executive vice president, Chamnarn Maytaprechakul, said the group would collaborate with restaurant tenants to give away vouchers worth Bt1,500 to any customers who rack up a dining bill of Bt15,000 at The Mall, The Em District (The Emporium and EmQuartier), or Siam Paragon.

Diners at The Mall shopping complexes whose bill is Bt1,000 will get a Bt100 gift voucher and two tickets to Fantasia Lagoon water park.

The campaign will be held between this Saturday and April 17, and is expected to increase customer traffic at the group’s major shopping complexes by 20 per cent.

“Songkran is one of the peak shopping seasons of the year,” Chamnarn said.

“Although some people will travel back to their home towns to celebrate the festive season with their families, others will stay in Bangkok to avoid the heavy traffic heading upcountry. Shopping malls will be popular destinations for people staying in Bangkok during Songkran because of the better traffic situation in the capital. Many small traditional shops on side streets will close during Songkran.”

He said the government’s measure that encourages people to eat out for an income-|tax deduction would stimulate traffic at shopping malls and restaurants.

Mayuree Chaipromprasith, senior vice president for business promotion at Siam Piwat, said that in accordance with the Cabinet’s stimulus policy on consumer spending during the Songkran holidays from April 9-17, Siam Paragon and Siam Centre were collaborating with restaurant tenants to mount a special campaign called “Songkran Dining Tax Rebate @ Siam Paragon & Siam Centre” on those dates.

Participating restaurants and shops will offer a discount of up to 20 per cent. There will also be gift vouchers for customer who dine at restaurants and shops joining in the campaign, she said.

Customers will be able to take tax invoices issued by restaurants between April 9 and 17 to request an income-tax deduction of up to Bt15,000, the government has announced.

Meanwhile, those dining at restaurants and shops joining the campaign at Siam Paragon and Siam Centre can also collect receipts from participating businesses during the same period entitling them to prizes and rewards.

Saving water

Central Pattana (CPN), meanwhile, will be campaigning to save water by holding foam parties, and will be holding various activities such as free concerts performed by well-known singers and musicians, arranging markets of |local goods and foods, and |water-sprinkling ceremonies |for revered Buddha statues in |each province. The events |will centre on CentralWorld |in Bangkok and CentralPlazas |and CentralFestivals nationwide.

“We are emphasising the importance of safety measures and will not allow any [water] weapons to be carried into any of our shopping centres,” said Nattakit Tangpoonsinthana, executive vice president for marketing. We will also strictly check the age of anyone buying alcohol and ensure that the activities in our venues are suitable for all ages.

“This year, we will focus |on holding foam parties as well |as using small water guns that |save water. This is a good |opportunity to change our behaviour from using lots of water in traditional celebrations to using a more appropriate quantity of water to cool down from the heat,” he said.

“We are changing this crisis into an opportunity and creating a good image for tourism. |We will also be holding water-|saving-campaign roadshows |to raise awareness on saving |water among visitors to CentralWorld, CentralPlazas and CentralFestivals.”

Nattakit said the government’s tax deduction would have positive effects on the overall retail market and encourage domestic travel during the holiday.

“With various types of restaurants in Central Pattana’s shopping complexes and Songkran activities held in front of the shopping centres, we believe the traffic to our shopping centres will increase by more than 20 per cent and sales at restaurants inside the shopping centres will rise by at least 15 per cent,” he said.

Tesco Lotus, meanwhile, is promoting road safety during Songkran.

As the Songkran holiday is usually one of the most critical periods for road accidents, a special promotion from today through next Wednesday will offer quality-certified motorcycle helmets at half price, cut from Bt399 to Bt199. The promotion is available at all Tesco Lotus hypermarkets nationwide.

Big C has also kicked off a promotion for Songkran Festival, providing special prices on water guns, beverages and clothing. Also, customers are eligible for a lucky draw worth Bt10 million to attend Uefa soccer matches, effective from now until April 18.

The hypermarket chain expects the campaign increase traffic at its stores by 20 per cent.

The Tourism Authority of Thailand and the Japan External Trade Organisation (Jetro) Bangkok Office on Tuesday held a seminar on industrial and agricultural tourism to strengthen cooperation between the two countries and give businesses a chance to hear one another’s success stories. It was part of a memorandum of cooperation that TAT and Jetro Bangkok signed last November.

Masayasu Hosumi, president of the Jetro Bangkok Office and the organisation’s chief representative for Asean and South Asia, said Japanese culture had been increasing in Thailand, which is home to more than 2,400 Japanese restaurants.

More shops are expected to follow as investment in the food, tourism and culture sectors is synergised.

In 2015, Japan welcomed 8.4 million international visitors. That number is expected to reach 20 million by 2020 and will be about 40 million within 10 years. Tourism spending in Japan was recorded at Bt1.1 trillion in 2015 and will increase to Bt2.5 trillion by 2020 and Bt4.7 trillion within 10 years.

Hosumi said the number of Thai tourists to Japan was around 200,000 in 2012, increasing to 800,000 in 2015. Meanwhile, Thailand received 1.38 million visitors from Japan last year, an 8.9-per-cent increase from 2014.

Hironobu Kitagawa, director-general of Jetro’s service industry promotion department, said agricultural tourism in Japan had become more popular among local and foreign travellers. He pointed out that today’s tourists wanted to experience and understand local history and a country’s unique culture.

Some of the key successes of industrial and agricultural tourism are a towel museum in Imabari, Ehime prefecture; instant noodles in Yokohama; a guitar factory in Matsumoto, Nagano prefecture; local handicraft at Kanazawa, Ishikawa prefecture; a sake brewery; and farm tourism in many parts of the country.

Nuntawan Sakuntanaga, director-general of the ministry’s Intellectual Property Department, said her department had met with key government agencies including the Royal Thai Police, the Department of Special Investigation, the Customs Department, the Revenue Department, and the Economic Crime Suppression Division on drawing up a plan for suppressing intellectual-property (IP) violations before proposing the plan to a subcommittee on this issue chaired by Deputy Prime Minister General Prawit Wongsuwan.

Under this plan, 11 “notorious” markets named by the Office of the United States Trade Representative will be targeted. They are at Karon and Patong beaches in Phuket, Pattaya in Chon Buri province, Rong Kluea Market in Sa Kaew, and, in Bangkok, Pantip Plaza, Klong Thom, Baan Mo, MBK, Sukhumwit Road, Patpong Market, and Jatujak or JJ Market.

Saphan Lek and Sukhumwit Flea Market were also named by the USTR, but have already been shut down.

To suppress the markets pinpointed by the US, relevant agencies will send teams to each place without any warning and concentrate on large traders of illegal goods.

In rural areas, the Commerce Ministry will ask for the Interior Ministry’s cooperation in instructing provincial governors to inspect and suppress traders of illegal goods.

“The meeting agreed that to get rid of large illegal goods traders, the government will enforce not only intellectual-property law to punish wrongdoers, but also tax and anti-money-laundering laws,” Nuntawan said.

She added that during the investigation process the Anti-Money Laundering Office would also be invited to join in.

Moreover, if any foreigners are found trading in illegal goods, such cases will be passed on to investigation teams before asking Interpol to blacklist the wrongdoers. Nuntawan said it was necessary to punish foreign wrongdoers severely as there were many cases of trading of copycat goods by foreigners, some of whom are repeat offenders.

Also, the Commerce Ministry will ask the owners of buildings and other places where illegal traders operate not to extend their rental contracts.

Nuntawan claimed that the trade in illegal goods in Thailand had been reduced as all relevant agencies had helped suppress such violations, seizing and destroying counterfeit goods. To tackle Internet-based violations more efficiently, the department has amended the Copyright Act.

Nuntawan said the US should be satisfied with Thailand’s attempts to reduce intellectual-property infringements and it spassage of laws to punish violators.

“I believe that the US will consider upgrading our trade status from the Priority Watch List to the Watch List after we demonstrated suppression of IP violations, passed relevant laws, and increased awareness of IP rights in the past years,” she said.

The hoped-for upgrade should ensure that Thailand does not |any more trouble trading |with the US. Otherwise, Washington could cut some |assistance or stop granting some trade privileges.

Thailand has been on the Priority Watch List under the US Special 301 Report since 2008 on grounds that it lacks awareness of IP protection and particular laws to prevent violations.

Jas later defaulted on the initial instalment of the upfront fee for the band, and thereby lost the right to obtain the licence.

AWN sent a confidential letter on the matter to the National Broadcasting and Telecommunications Commission office yesterday. The NBTC board will consider the AWN proposal today.

It will also consider the schedule for a new auction for the licence.

If the NBTC agrees with its proposal, AWN will hold a shareholders’ meeting to ask for approval to buy the licence, but it could take two months to arrange such a meeting.

AWN also proposed to the NBTC that while waiting for the shareholders’ approval, the regulator should consider allowing AIS to continue serving its subscribers on the 900-megahertz band until AWN obtains the licence.

AIS recently asked the NBTC to extend the deadline for switching off its second-generation cellular service on the 900MHz band from April 14 to June 30, citing the need for more time to migrate the remaining subscribers to other networks.

The telecom committee plans to hold a new auction for the 900MHz licence on June 24.

It set the minimum starting bid at Bt75.654 billion, which was Jas’s winning bid in December.

An NBTC source said the commission might have to ask for permission from the government to call in AWN for negotiations on buying the licence at the Jas price.

If AWN were to change its mind and decline to buy it at that price, the NBTC would call in Total Access Communication subsidiary DTAC TriNet, and then TrueMove H Universal Communication (TUC) of True Corp.

At the December auction, AWN’s final bid for Slot 2 of the licence packages up for grabs was Bt75.976 billion, while that of DTAC for Slot 1 was Bt70.180 billion. TUC proposed Bt73.72 billion for Slot 1 before it switched to compete for Slot 2 and won by bidding Bt76.3 billion.

AIS had operated its 2G service on Slot 1 before the NBTC reclaimed it for auction. Jas Mobile won this slot but failed to pay the first instalment of the upfront licence fee.

AIS has 8.2 million 2G subscribers, of whom 7.8 million are on AWN but still roam with AIS’s 900MHz network.

Earlier the NBTC telecom committee ordered AIS to shut down the service on March 15 at midnight but the company sought a Central Administrative Court injunction against the order.

The court granted the injunction to compel the telecom committee to allow AIS to continue using 900MHz until April 14.

Thailand Development Research Institute president Somkiat Tangkivanich said the regulator should quickly call a new auction of this 900MHz band.

As long as it delays the bid, the spectrum’s value is estimated to decline by Bt5 billion per year on average. He added that holding off until June was still too slow, as it would affect the existing 900MHz subscribers.

Somkiat said that if a private telecom operator could reach a partnership with a state agency to offer a service jointly on that state agency’s spectrum, the private operator might decide not to enter the new auction of the 900MHz licence. If there is no meaningful competition at the auction, the outcome is likely to be a lower final price.

AIS recently signed a memorandum of understanding with TOT to provide 3G cellular on the state agency’s 2.1-gigahertz band on a non-commercial trial basis.

Somkiat disagreed with the NBTC plan to keep the 900MHz band for one year in the case that no one joins the new auction, as the spectrum’s value would gradually decline. One way out of this dilemma is for the commission to see if any of the unsuccessful bidders at the previous auction is willing to pay what Jas bid for it in December, as long as no other party opposes such a payment.

He added that it was within the NBTC’s purview to realise the optimal use of the spectrum for the maximum public interest.

Meanwhile, a consumer-protection network yesterday asked the licensing body to review its resolution to keep the 900MHz band for one year if no one joins the new auction. The group said this would amount to a delay of the use of this precious spectrum.

In addition, the schedule to hold the new auction in June means the NBTC will fail to deal with the shutdown of AIS’s 900MHz service on April 15, which will affect its 2G subscribers on that spectrum.

The group will submit its ideas to the NBTC today.