The True concession will end in 2018 and TT&T’s in 2019. TOT has to draw up plans for operation of their fixed-line services after the concessions expire and propose the plans for the Information and Communications Technology Ministry’s consideration.

Acting TOT president Montchai Noosong said there were three options: TOT could continue the services on its own, it could run the services jointly with True and/or TT&T, or it could seek new companies to provide the service jointly.

In the case of TT&T, it looks like TOT will run the company’s service itself, he said. The rehabilitation period of TT&T ended last year but its rehab planner PCL has sought a Bankruptcy Court order to extend the period by another year. TT&T owes Bt38 billion to TOT.

The court ordered TT&T to enter the rehabilitation process in November 2008 and approved the rehab plan in December 2010.

TOT granted a 25-year concession to TT&T to operate 1.5 million fixed-line telephone numbers.

True currently has 2 million fixed-line customers, while TT&T has 490,000. TOT has 3 million subscribers.

The Thai Rice Exporters Association (TREA) yesterday reported that Thailand had lost its crown as the world’s largest rice exporter, with India claiming top spot last year. By volume, the Kingdom’s rice shipments dropped by 10.8 per cent to 9.79 million tonnes, lower than India’s 10.23 million tonnes. Thailand’s rice export value also decreased by 15.2 per cent to $4.61 billion in 2015.

Despite expected lower export volume, Thailand could again be the world’s largest rice exporter this year, as India expects to export only 8.5 million tonnes, and Vietnam will remain third with 7.3 million tonnes.

TREA president Charoen Laothammatas said rice trading would fluctuate this year since many importing countries would be affected by falling oil prices, while rice production in many countries would be unpredictable because of drought.

“Thailand’s rice shipment this year will not increase. Although world rice production and stockpiles will decrease from the drought impact and more trading, the falling oil price will hit the purchasing power of many rice-importing countries, mainly in Africa and the Middle East,” he said.

Charoen said the price of rice would also be unpredictable, but should not go lower than it is now, as the end of the harvest season is approaching next month.

From the current level, the price could gradually increase by 10 per cent on a lower supply of rice in the world market, including Thailand, as expected production from the second crop will be down by 40-50 per cent or 2 million tonnes because of drought, the association predicts.

However, the price will not be able to increase a lot as the baht is expected to weaken further, and the world market has acknowledged that Thailand has large stockpiles of rice remaining.

The average domestic price of paddy white rice is expected to be about Bt8,000 per tonne, while the price of paddy jasmine rice is expected at Bt10,000-12,000 a tonne.

The average export price of white rice is now $365 a tonne, while the price of jasmine rice is $700-$720 a tonne.

Stockplies

Thailand’s high stockpiles of rice, about 13.5 million tonnes, will continue to pressure the price of rice in the world market, and the price of Thai rice will not increase much this year, Charoen said.

Moreover, as Vietnam is expected to be hit only slightly by drought, rice trading in the world market will still face tough competition.

To reduce pressure on the price of Thai rice, the TREA suggested that the government gradually sell rice from its stocks soon in small lots so that Thailand could clear out its stockpile within two years.

Charoen said Thailand could negotiate with many countries for government-to-government (G2G) deals to sell rice from the stockpiles. About 4 million to 5 million tonnes of rice are expected to be released from the government’s warehouses this year.

Chookiat Ophaswongse, honorary president of the TREA, said there was still high demand for rice in many countries in Asia, mainly China, for about 4.5 million tonnes, and about 2 million tonnes each for the Philippines and Indonesia. Rice is also in demand in countries in the Middle East.

The government’s trade mission to Iran late this month should also open an opportunity for Thailand to sell about 300,000 tonnes of rice to that country under a G2G contract this year, he added.

However, some countries in Africa, mainly Nigeria, could lower imports of rice this year as the falling global oil price affects their purchasing power.

Normally, Nigeria is expected to import about 2 million to 3 million tonnes of rice a year. However, with its economy relying mainly on oil trading, the falling oil price could decrease its ability to import rice this year.

According to the US Department of Agriculture’s estimates, world rice trading is expected to increase slightly, by 0.3 per cent this year, from 41.95 million tonnes in 2015 to 42.1 million tonnes.

World rice production will decrease by 1.9 per cent from 478.19 million tonnes to 469.32 million tonnes, while demand will improve by only 0.5 per cent from 482 million tonnes to 484.64 million tonnes.

Because of drought, total rice stocks will decrease by 14.8 per cent from 103.74 million at the end of last year to 88.42 million tonnes at the end of this year, the first time in eight years that the world’s rice stockpiles have dropped lower than 100 million tonnes.

China will still be the world’s largest importer, buying about 4.7 million tonnes of rice this year from overseas, up by 4.4 per cent from 4.5 million tonnes last year.

Srisuda Wanapinyosak, the Tourism Authority of Thailand’s deputy governor for international marketing in Asia and the South Pacific, yesterday said an estimated 1.01 million foreigners would visit the Kingdom during the nine-day celebration, from February 6-14.

The projection is equivalent to a 19-per-cent increase in arrival numbers over last year’s Chinese New Year.

The forecast revenue contribution of Bt29 billion represents a 32-per-cent rise from the same period last year.

Srisuda said Chinese from mainland China, Hong Kong, Taiwan, Singapore and Malaysia would together make up nearly half of the visitors at 476,000 – some 20 per cent higher than last year.

About 300,000 of them are expected to be from mainland China.

Chinese tourists in total are expected to generate income of Bt15 billion during the celebration period, she said. A total of 330 charter flights from mainland China, Hong Kong, Taiwan, Singapore, Malaysia, South Korea, Japan and Vietnam will carry tourists to Thailand over Chinese New Year.

Of these flights, 174 will be direct to Bangkok, 75 to Phuket, 44 to Chiang Mai and 37 to Krabi.

“Despite China’s [economic] instability, the TAT remains optimistic that the country will contribute the largest arrival source with more than 6 million tourists expected this full year,” Srisuda said.

According to the TAT Intelligence Centre, the key factors that are helping attract more Chinese and other tourists to the Kingdom are the availability of multiple-visit visas and visas on arrival, more scheduled and charter flights, and the marketing efforts by travel agencies overseas.

The centre points to the fact that eight of the 10 most popular foreign destinations for Chinese are in Asia, with the top three favourites being Thailand, Japan and South Korea.

Tourism and Sports Minister Kobkarn Wattanavrangkul said that around 2 million foreigners had arrived at this country’s five major airports between January 1 and 26, with spending rising by 16 per cent from the same period last year. Arrivals at Don Mueang International Airport saw the highest growth, at 51 per cent, followed by Chiang Mai (31 per cent), Phuket (21 per cent), Hat Yai (12 per cent) and Suvarnabhumi (6 per cent).

Kobkarn added that the ministry would this year promote cross-border tourism with Cambodia and Myanmar, and would push marine and cruise tourism by linking Thailand with the Philippines in its marketing efforts.

Finance officials and regulators from seven Apec economies, namely Australia, Japan, South Korea, New Zealand, the Philippines, Singapore and Thailand, signed on January 18 in Singapore a memorandum of cooperation on the content of the Asia Region Funds Passport.

The seven Apec members are pioneer participants in the Asia Region Funds Passport, an agreement that aims to make it easier for financial-services professionals in a participating Apec economy to sell investment products, such as mutual funds, to retail customers in other participating Apec economies. The agreement hopes eventually to promote job creation and growth in the region.

Securities regulators from these seven economies are expected to sign a further memorandum early in the year, according to an official statement. The Asia Region Funds Passport is on track for commencement by 2017. Activation for the Asia Region Funds Passports will take place as soon as two or more participating economies sign the memorandum and implement its arrangements, the statement said.

The Apec Policy Support Unit found in its study that once fully launched, the Asia Region Funds Passport could save the region investment to the tune of US$20 billion (Bt717 billion) annually in fund-management costs and could, furthermore, offer higher investment returns with the same or with a lower degree of risk.

The group also said the initiative would encourage a pool of local funds that could create 170,000 jobs in Apec economies within five years.

“The Asia Region Funds Passport aims to cut down on incompatible or overlapping regulation that may hinder the marketing of managed funds between participating Apec economies,” said Trudie Wykes, chairwoman of the informal group leading its development. “The initiative is a win-win idea for financial services professionals and retail investors with potentially significant benefits for employment and economic growth,” she said.

The Asia Region Funds Passport was included in Apec’s services sector programme as one of the themes in the 2015 Apec Economic Leaders’ Week held in Manila in November, attended by 21 member countries.

Commenting recently on the initiative, Muliaman D Hadad, chairman of the Indonesian Financial Services Authority, said the agency had yet to receive any official information from Apec, but would prepare for any aspect under its supervision that could be affected by foreign agreements.

“I don’t know about the details yet, but basically we should first thoroughly review the agreement to see whether it will benefit us,” he said.

Muliaman said the Indonesian financial regulator would actively study all cross-border agreements, including financial-sector liberalisation in the Asean Economic Community set to commence in 2020. “We always emphasise that agreements on financial sectors should be mutually beneficial and uphold the principles of reciprocity between the members,” he said.

Meanwhile, Indonesia Stock Exchange (IDX) president director Tito Sulistio said he was convinced that such liberalisation in cross-border sales of investment products would raise the competitiveness level of sales agents in the domestic capital market.

According to Tito, direct competition with foreign professionals would increase the quality of service and efficiency in local companies.

“Pak Jokowi [President Joko Widodo] has said that Pertamina [the state-run oil and gas company] had bad service quality, which would be improved after it entered into open competition with foreign companies.

“This competition will benefit local investors. I am convinced that local investors in the capital market will be happy with a larger variety of products, including those from overseas,” he said, adding that Indonesia’s capital market was relatively liberal towards foreign investments.