Failure to join TPP cited as obstacle to Korean investment in Thailand

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THAILAND’S missing out on the Trans-Pacific Partnership is one of three major obstacles to Korean investment in the country, according to the Federation of Korean Industries.

Investors from many countries are considering relocating their bases from Thailand because it did not join the US-led trade pact, Lee Seung-cheol, vice chairman and chief executive of the FKI, told a luncheon hosted by Thai Deputy Prime Minister Somkid Chatusripitak in Seoul yesterday.

Twelve Pacific Rim nations, which represent nearly 40 per cent of the global economy, signed the TPP agreement in February. They are the United States, Japan, Australia, Mexico, Canada, New Zealand, Chile, Peru, and four of the 10 Asean members – Malaysia, Singapore, Vietnam and Brunei.

Lack of technical personnel and restrictions on hiring foreign workers were cited as the other two major problems that Korean investors are facing in Thailand.

“If Thailand can solve these problems, it will become the most glamorous country for investors in Asean,” Lee said.

About 10 senior executives of Korean companies took part in the working lunch with Thai ministers, senior officials and executives from the Federation of Thai Industries, Saha Group, Charoen Pokphand Group, Kantana Group, Unique Engineering and Construction, and other organisations.

Somkid said Prime Minister Prayut Chan-o-cha had made it clear that his government was interested in the TPP.

Prayut had ordered the Commerce Ministry to study the pact’s pros and cons and meet up with a range of citizen groups to make sure the country could get maximum benefit from joining the pact.

“This morning I also met with a Korean company that said it had a disadvantage compared with firms from other countries in importing raw materials because Korea has no FTA [free-trade agreement] with Thailand.

“But I told them if they have BOI [Board of Investment] incentives, they can use the privileges” to get a reduction in import duties, Somkid said.

Companies investing in targeted industries could let their people stay even longer than the period normally allowed by a work permit.

Somkid said the government was well aware that human resources and the labour force would be problems for the future, so the prime minister has ordered a reform of the education system, especially in the vocational, technical and engineering areas.

Somkid, who is visiting South Korea until today, also held face-to-face meetings with top executives of leading Korean companies including Samsung Electronics, Daewoo, Hana Financial Group, Lotte Duty Free, Posco and Yello Mobile.

An executive of Lotte Duty Free said the company had won a concession from the Thai government to run a duty-free outlet. However, it could not start the operation, since King Power stills hold exclusive rights to run the business at Suvarnabhumi and Don Mueang international airports.

The minister said he suggested opening duty-free outlets in Chiang Mai or Phuket instead.

Daewoo is interested in taking part in the Blue Line and Yellow Line mass-transit projects that the Cabinet is expected to approve by the end of this month. Hana Bank would like to establish a branch in Thailand.

S’pore, Malaysia, Thailand to lag behind Asean peers: Moody’s

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ECONOMY

THE GROWTH prospects of the Asean major export-oriented economies of Singapore, Malaysia and Thailand are expected to remain weaker than the region’s domestic demand-driven economies, says Moody’s Investors Service.

The international ratings agency said yesterday that the growth outlook of Asean economies was likely to diverge in 2016 and 2017, against the backdrop of subdued global demand.

Moody’s vice president and senior research analyst Rahul Ghosh said Singapore, Malaysia and Thailand’s growth prospects would remain weaker vis-เ-vis those of Indonesia and the Philippines in 2016 and 2017.

“Singapore, Malaysia and Thailand are susceptible to a prolonged period of subdued global demand via both the export channel and weaker investment demand,” he said.

“We forecast G20 GDP growth at 2.6 per cent in 2016, similar to last year, and rising to only 2.9 per cent in 2017. And downside risks to global growth are increasing,” he added.

Vietnam (B1 stable) will remain a regional growth outperformer on the back of robust manufacturing activity and strong foreign direct investment flows.

Export growth is slumping across the region. However, the overall economic impact will vary based on the relative importance of trade to GDP.

According to Moody’s, total trade – the sum of exports and imports – accounts for 346 per cent, 131 per cent and 130 per cent of GDP in Singapore (Aaa stable), Malaysia (A3 stable) and Thailand (Baa1 stable).

This is much higher than the 41 per cent recorded for Indonesia (Baa3 stable) and 58 per cent for the Philippines (Baa2 stable).

Ghosh was speaking on Moody’s just released edition of “Inside Asean”, which also examines the implementation of major policy reforms in Malaysia, which have mitigated the negative impact of lower oil prices on the government’s fiscal position.

Moody’s noted that external pressures – including increased capital flow volatility and consequent exchange rate depreciation – have led to a deterioration in Malaysia’s growth and external metrics thereby supporting Moody’s earlier decision to revise the sovereign rating outlook to |stable from positive.

Govt expects 3.8% rise in 2016 auto, parts exports

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AUTO EXPORT

THE Department of International Trade Promotion expects the value of automobile and auto-parts exports to increase by 3.8 per cent this year to US$32.56 billion (Bt1.13 trillion).

The department is collaborating with the auto-parts industry to organise the “Thailand Auto Parts & Accessories” trade fair (TAPA 2016). The April 7-10 event at Bitec in Bangkok’s Bang Na district will showcase the potential of Thai manufacturers and attract international buyers and importers to source a multitude of products.

Malee Choklumlerd, director-general of the department, said Thailand now was the 12th-largest automobile manufacturer in the world and Asean’s leader in the auto-parts industry.

The value of automobile and auto parts exports last year was $31.36 billion and is expected to increase by 3.8 per cent this year. The major export markets are Australia, Japan, the Philippines, Indonesia, Malaysia and the Middle East.

TAPA 2016 is being organised by Malee’s department in collaboration with the Thai Auto Parts Manufacturers Association (TAPMA), the Worachak Automotive Synergy Association (WASA), the Thai Auto Parts Aftermarket Association (TAPAA) and the Thai Subcontracting Promotion Association (Thai Subcon).

The event will present high-quality auto parts and accessories as well as environment friendly innovations in an international trade arena to shine a spotlight on Thailand as a major global sourcing hub of these products.

TAPA 2016 will be Asean’s premier auto-parts trade fair to showcase new products, technologies and innovations. It encourages the industry to develop its potential under the Asean Economic Community and to utilise safe and environment friendly technologies to answer the needs of the world’s automotive industry.

TAPA 2016 will feature 590 exhibitors in 1,000 booths from Thailand and more than 10 countries in Europe, Asia and Asean. The event is expected to welcome more than 10,000 visitors from Asean, Japan, Taiwan, Australia, Africa, Europe, mainland China, India, the Middle East, South America, Russia and elsewhere.

It is expected that the event will generate about Bt2.1 billion in trade value from orders within one year.

NBTC panel to consider criminal suits against Jas

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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DEFAULT

THE TELECOM Committee of the National Broadcasting and Telecommunications Commission will today consider whether to file criminal lawsuits in addition to civil liability suits against Jas Mobile Broadband, which defaulted on the payment of its first instalment of the Bt75.65-billion spectrum licence, NBTC commissioner Pravit Leestapornvongsa said.

Meanwhile, share prices of all three listed Thai telecom firms rose yesterday in the wake of Jas’s default while shares of its parent firm, Jasmine International, continued to be suspended from trading.

According to the NBTC, Jas Mobile could face a charge of violating the state auction law against participants bidding unrealistic prices to defeat other bidders and then defaulting on their own bids, causing damage to the state. Violators face imprisonment of 1-3 years and a fine of up to 50 per cent of the winning bid price.

In addition, the NBTC will seek compensation in a civil liability suit against Jas Mobile Broadband whose parent firm Jasmine International yesterday told the Stock Exchange of Thailand it was unable to pay for the licence because it could not obtain a multibillion-baht bank guarantee from an unnamed Chinese partner before Monday’s deadline.

Industry sources said Jasmine had not provided any evidence of its attempt to secure a bank guarantee or a partnership with the unnamed Chinese partner. Pete Bodharamik, the CEO of Jasmine International, said in a letter to the SET that it could not get the bank guarantee for Bt72 billion because the Chinese partner needed more time for approval by the regulatory body.

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He said the whole process was expected to be completed around mid-April, exceeding the 90-day deadline set by the NBTC, which could not extend the deadline.

According to Jasmine’s legal adviser, the company would forfeit its deposit of Bt644 million placed with the NBTC because of the payment default.

However, there was no other violation of the auction regulations for the 900MHz spectrum so there should be no other liability for the company.

The SET yesterday continued to impose the “SP” (suspended) sign on the shares of Jasmine International

NBTC commissioner Pravit said the NBTC reserves the right to file lawsuits against the defaulter for depriving the state of licence revenue and for causing damage to the public, as well as seek compensation for the expenses of holding the auction, which cost more than Bt100 million.

In the civil liability lawsuit, he said JASMBB, a unit of Jasmine International, as well as JASMBB shareholders would be the defendants.

Yesterday Prime Minister General Prayut Chan-ocha said the NBTC should re-auction the spectrum slot in light of the default.

Meanwhile, the share prices of three telecom companies – Advanced Info Services, True Corp and Total Access Communication – rose yesterday.

At 2.45pm, DTAC had gained the most – 8.28 per cent – rising to Bt45.75. AIS’ share price moved up 5.65 per cent to Bt187 while True gained 1.25 per cent to Bt8.10. DTAC closed at Bt47.5, up 12.4 per cent, while AIS finished at Bt190, up 7.3 per cent and True was unchanged |at Bt8.

 

Japan backs Thai HR goals

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HR

Suthichai Yoon (middle), chief advisor to editorial and management board of Nation Multimedia Group yesterday moderated the 1st Round Table Conference of Human Resources Development to identify what real needs are in the market and possible solutions to p

Suthichai Yoon (middle), chief advisor to editorial and management board of Nation Multimedia Group yesterday moderated the 1st Round Table Conference of Human Resources Development to identify what real needs are in the market and possible solutions to p

TO ESTABLISH Thailand as Asean’s human-resource development hub, Japan is joining forces with the Thai public and private sectors along with educational institutes to strengthen the |capacity to provide quality STEM(Science, Technology, Engineering and Mathematics) education, a forum was told.

However, leaders in the industrial sector, educational institutes and top companies suggested that the Thai education sector and policymakers should establish a deeper collaboration in human-resource development to respond to real demand in the market, as the major industries in the Kingdom still lack quality labour forces.

Referring to research on education for industrial human-resource development, Shuichi Ikeda, chief representative from the Japan International Cooperation Agency (JICA) Thailand Office, said technical schools did not satisfy the needs of industry in either quantity or quality. In addition, capacities of technical and vocational schools need to be strengthened to achieve the expected educational outputs for upgrading industry.

To deal with those problems, Teerakiat Jareonsettasin, deputy minister of education, said the government needed to invest in human capital, creating a market-friendly environment with strong support from the financial sector.

“I would like to suggest that liberalisation of universities is crucial as well as promoting free and fair competition for overseas educational institutions to improve quality. In line with this, we need to raise universities’ involvement in mega-projects and the private sectors’ projects,” Teerakiat said.

Bandhit Rojarayanont, president of the Thai-Nichi Institute of Technology, said that from his experience of 43 years in human-resource development involving about 3,000 to 4,000 companies, 20 per cent of those firms said they needed engineers equipped with communication skills in English and Japanese along with “soft skills”. “English communication skills are a must while Japanese skills are surplus,” Bandhit said, adding that soft skills would be able to help them get along with corporate culture.

Shiro Sadoshima, Japan’s ambassador to Thailand, said yesterday that Thailand and Japan had a win-win relationship. To avoid the middle-income trap and change the current labour-intensive structure to a knowledge-intensive structure, it was crucial that industries should have sufficient capabilities to create their own original and innovative products. Kyoichi Tanada, president of Toyota Motor Thailand, said his company was continuing to support a programme to send Thai engineers to be trained in Japan.

He said the company wanted to see Thais qualified to be chief engineers in Toyota’s research and development facilities here.

“We hope to create quality Thai chief engineers within 10 years,” he said.

Moody’s says Singapore, Malaysia, Thailand to lag Asean peers

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Moodys-says-Singapore-Malaysia-Thailand-to-lag-Ase-30282193.html

ECONOMY

KUALA LUMPUR – The growth prospects of Asean major export-orientated economies of Singapore, Malaysia and Thailand are expected to remain weaker than its domestic demand-driven economies, says Moody’s Investors Service.

The international ratings agency said on Tuesday that hence growth outlook of Asean economies was likely to diverge in 2016 and 2017, against the backdrop of subdued global demand.

A Moody’s vice president and senior research analyst Rahul Ghosh said Singapore, Malaysia and Thailand’s growth prospects would remain weaker vis-a-vis those of Indonesia and the Philippines in 2016 and 2017.

“Singapore, Malaysia and Thailand are susceptible to a prolonged period of subdued global demand via both the export channel and weaker investment demand,” Ghosh said.

“We forecast G20 GDP growth at 2.6% in 2016, similar to last year and rising to only 2.9% in 2017. And downside risks to global growth are increasing,” he added.

Vietnam (B1 stable), meanwhile, will remain a regional growth outperformer on the back of robust manufacturing activity and strong foreign direct investment flows.

Export growth is slumping across the region; however, the overall economic impact will vary based on the relative importance of trade to GDP.

According to Moody’s, total trade — the sum of exports and imports – accounts for 346%, 131% and 130% of GDP in Singapore (Aaa stable), Malaysia (A3 stable) and Thailand (Baa1 stable), respectively, which is much higher than the 41% recorded for Indonesia (Baa3 stable) and 58percent for the Philippines (Baa2 stable).

Ghosh was speaking on Moody’s just-released edition of Inside Asean, which also examines the implementation of major policy reforms in Malaysia, which have mitigated the negative impact of lower oil prices on the government’s fiscal position.

Moody’s noted that external pressures — including increased capital flow volatility and consequent exchange rate depreciation — have led to a deterioration in Malaysia’s growth and external metrics thereby supporting Moody’s earlier decision to revise the sovereign rating outlook to stable from positive.

NBTC set to deal with Jas default

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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4G

NBTC secretary-general Takorn Tantasith (right) press conference yesterday that Jas Mobile Broadband’s failure to pay the first instalment for the 900-megahertz licence it won at auction in December.

NBTC secretary-general Takorn Tantasith (right) press conference yesterday that Jas Mobile Broadband’s failure to pay the first instalment for the 900-megahertz licence it won at auction in December.

THE NATIONAL Broadcasting and Telecommunications Commission (NBTC) will meet tomorrow to respond to Jas Mobile Broadband’s failure to pay the first instalment for the 900-megahertz licence it won at auction in December.

The NBTC earlier resolved to hold a new auction for Jas’s 900MHz band with a starting price of Bt75.65 billion.

The other 900MHz licence winner, True Move H Universal Communication (TUC), may take part in the re-auction. If there is no interest in the band, the NBTC will keep it for at least one year.

A source from AIS said the telecom giant was keen to take part in the re-auction but it had to consider the terms and conditions of the auction first.

Lars Norling, chief executive of Total Access Communication (DTAC), said that this was an unfortunate and unprecedented situation that called for a well-thought-out and fair solution for all involved parties.

If a re-auction must take place, it’s DTAC view that there should be a new auction of this Jas 900MHz-band based on the original criteria and reserve price of Bt16.080 billion (this applies if there are fewer than three bidders) set by the NBTC. Only then can the true value of the spectrum be determined, he said.

Jas Mobile Broadband (JASMBB) of Jasmine International, one of the two 900MHz licence winners, yesterday did not show up to pay the instalment after the deadline yesterday at 4.30pm.

Its failure to pay the instalment suggested that there is no new player in the market to compete with the three incumbent players.

Jas’s share price yesterday closed at Bt3.68, up 2.79 per cent from last Friday, while that of Advanced Info Service (AIS) closed at Bt177, up 3.51 per cent.

DTAC’s share price closed at Bt42.25, up 5.62 per cent, and True Corp closed at Bt8, up 1.91 per cent.

A Jas source said the company had tried its best to fulfil the payment conditions but declined to elaborate.

The telecom committee acknowledged the Jas case yesterday and will convene tomorrow on how to proceed next, including confiscating Jas’s cashier cheque of Bt644 million placed before the auction, and to evaluate the possible damages from the case.

“In this Jas case, we consider it a sensitive issue that we have to consider in all aspects, including the legal one and the country’s interest. We’ll consider more details on Wednesday,” telecom committee chairman Settapong Malisuwan said yesterday.

It is too soon to specify the damage from the case, Settapong added. He added that the committee has done its best in this case.

After tomorrow’s meeting, the committee will also present the conclusion to its legal subcommittee to consider what to proceed next.

NBTC secretary-general Takorn Tantasith yesterday said the watchdog might hold the re-auction in four months.

The committee has also informed Prime Minister General Prayut Chan-o-cha on the Jas case.

Takorn added that besides the option of the re-auction, another option is that the NBTC will propose to the junta that AIS, which proposed the second-highest price among four bidders, would be called to ask if the company is interested in buying this licence for Bt75.65 billion. If not, the watchdog will make the same proposal to DTAC.

Takorn said the NBTC had to consult with the junta on this second option.

The NBTC held the auction of two lots of 900MHz licences last December. AIS competed for the second spectrum lot by bidding Bt75.976 billion but was outbid by True Corp, which offered Bt76.298 billion.

As the auction ended, DTAC competed with JASMBB for the first spectrum lot by bidding Bt70.180 billion but it lost the bid to JASMBB.

Transport Ministry aims to fast-track 10 mass-transit train projects

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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MASS TRANSIT

THE TRANSPORT Ministry vows to commence 10 delayed mass-transit projects while the current military-led regime is in power.

The confidences stems from the consideration proccess via the super-fast lane, an amended environmental law, under which the state agency responsible for an investment projects can undertake the process of procurement and do not need to wait for the completion of the projects’ environmental impact assessment (EIA) review.

The projects are part of the country’s 20 urgent infrastructure mega-projects that the government plans to start by 2017. The projects have a combined investment value of Bt1.8 trillion and come under the Transport Ministry’s eight-year infrastructure development plan (2015-22).

Transport Minister Arkhom Termpittayapaisith announced the plan to commence construction of the urban-rail projects yesterday.

The master plan for the development of mass-transit train projects in Bangkok covers a 10-year period.

Arkhom said a long delay in infrastructure projects was affecting the country’s growth and the government now employed an infrastructure-led growth policy.

He said Cabinet approval would be sought next month for many projects. They include the following mass-transit projects: the Orange Line (Min Buri-Thailand Cultural Centre), the Pink Line (Khae Rai-Min Buri) and the Yellow Line (Lat Phrao-Samrong).

The bidding process for the construction of those lines is expected to be completed by August.

The Purple Line (Bang Sue-Bang Yai) is slated to commence services in August, four months sooner than expected, said Arkhom, while the Cabinet is expected to decide on the proposed Purple Line (Tao Poon-Ratchaburana) by June. Also in the mix are six dual-track railway projects, two of which are already under construction.

The plan is to submit the others gradually to the Cabinet for consideration and proceed with the bidding process.

The Thai-Chinese medium-speed-railway project is under negotiation while the design work for the Thai-Japanese high-speed-railway project is completed, Arkhom said.

He added that for the other two projects, high-speed trains from Bangkok-Rayong and Bangkok-Hua Hin, the ministry would try to seek approval from the Cabinet in April before proceeding with the bidding process.

Meanwhile, the expansion of Suvarnabhumi International Airport’s second phase is under way.

Finance Minister Apisak Tantivorawong said that in light of the global economic slowdown, the government had shifted the focus to be more on internal economic growth, especially growth driven by the grass-roots economy.

Long-term policies sought for migrant workers

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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MIGRANT

TO cope with the liberalisation of the labour market in Asean, the Thai and Myanmar governments are looking for long-term policies on migrant workers.

Sein Htay, president of the Migrant Worker Rights Network (MWRN), said there were many problems regarding the violation of migrant rights in Thailand. They include illegal deductions from salaries and overtime by some employers. Some migrant workers are also not allowed to take sick leave or honour their cultural holidays.

“Migrant workers have to pay extra costs for work and migration documents because of extra charges by brokers arranging their trips to work in Thailand,” he said.

The MWRN on Sunday hosted a forum to promote understanding about the government’s new policy for migrant workers, all of whom will now need to apply for a non-Thai identity card (pink card) to be granted permission to remain in the Kingdom for another two years.

About 400,000 workers currently hold pink cards, which will expire on March 31 and will have to be renewed. Migrant workers who hold a visa will not be able to renew them once they expire, and will also need to apply for a pink card. Once approved, they will also have their stay extended by two years.

The forum in Samut Sakhon was attended by around 600 migrant workers from Myanmar.

Sein Htay said the Thai and Myanmar governments had been working together for five years to solve the problem of illegal migrant workers from Myanmar in Thailand.

Arak Prommanee, director-general of the Thai Labour Ministry’s Department of Employment, said Thailand was still facing a shortage of unskilled labour and the government’s policy was to allow migrant workers already here to stay in their jobs.

“We will allow existing migrant workers whose non-Thai identity cards, or pink cards, have expired to renew their cards and continue their work in Thailand for another two years,” he said.

He added that there were currently about 3 million migrants working in Thailand.

About five years ago, the Thai and Myanmar governments signed a memorandum of understanding allowing Myanmar nationals to come and work in Thailand, which was experiencing a major shortage of unskilled labourers. Arak said that for new migrant workers, the Thai government would give priority to those who come in under this MoU.

Andy Hall, international-affairs adviser for the MWRN and the State Enterprises Workers’ Relations Confederation (SERC), who has been in Thailand for 15 years, said there were between 3 million and 4 million migrant workers in Thailand, representing 15 per cent of the total labour market. About 80 per cent are from Myanmar, 15 per cent from Cambodia, and the rest from Laos and Vietnam.

He said the government announced in Mahachai on Sunday its new migration policy that limits migrant manual labourers’ freedom of movement from or outside of the province where they are employed, unless an employer or a government official approves their travel plans.

Under this policy, migrant workers will be limited to just seven days’ travel outside their province of registration even if travel permission is granted. Based on past practice, the process of gaining such permission will likely be lengthy and will often involve bribery of brokers and law-enforcement officials.

Migrant workers will also not legally be allowed to return to their country of origin with their new pink identity cards as freedom of movement will be restricted. Workers can likely no longer be able to return to their country of origin by air. In addition, migrant workers’ permission to change employers will be severely restricted to only a few situations under the new policy.

“The Thai government’s new migrant-worker policy seems a major step backwards for migrant workers’ personal-identity management. It is very disappointing,” Hall said.

Kuvera, a Myanmar monk who has been in Thailand for eight years, said many workers from his country were poorly educated, and were easily confused by this country’s regulation, of even Myanmar’s own rules.

“So what they have learned is from previous workers who have knowledge and experience on how to stay in a foreign country and how to [deal] with other people,” said Kuvera, who is head of the Vamsanurakkhita Association of Myanmar.

However, not all of these “ideal leaders” gave newcomers the correct advice.

Ministry sticks to 5% export growth forecast

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EXPORT

The Commerce Ministry is maintaining its estimate of 5-per-cent export growth this year, focusing on product development, promoting the service sector and penetrating niche markets.

Commerce Minister Apiradi Tantraporn said the ministry had not lowered its growth forecast and would focus on enhancement of Thai exporters’ competitiveness. Product development will also be emphasised and the service sector will be given more promotion, given its high rate of expansion. Consumers’ behaviour has changed rapidly with more concentration on e-commerce, she said, noting that more discussion on marketing for exports was required. She said agricultural products needed relief measures.

The ministry this year will lead Thai business operators to penetrate foreign markets in other countries, particularly Cambodia, Laos, Myanmar and Vietnam, whose economies are growing. Other places of interest are Iran, Africa, Central America, China and India, where cities will be particularly penetrated.

On the 64th anniversary of the Department of International Trade Promotion yesterday, the department signed five memoranda of understanding with private companies as guidelines to develop the country’s economy and promote exports.

These include cooperation on international trade promotion for halal products and services, on the “SMEs Genius Exporter” programme, on promotion of Thai business operators for international trade.