HEADLINE MAKER

A guitarist meets a uke and it's love at first note

The owner of ukulele shop Apple Rangers, Phennapang Chaidan has also designed simple uke tutorials for the Net that are earning her quite a following
She may not be quite as big an Internet sensation as young Filipina singer Charisse or the 15-year-old South Korean acoustic finger-style guitarist Sungha Jung, but Phennapang Chaidan, 31, is raking up the hits on YouTube with her deft ukulele playing.
The uke, as it's known for short, looks like a small guitar but has only four strings. It's long been associated with Hawaii though it actually originated in Portugal.
Popular in Thailand for the last three or four years, the ukulele achieved star billing last year when singer Singto Numchok picked up the People's Choice prize at the "Ukulele Thai Competition". Early this year, the instrument was accorded an event of its very own, with Ribbee Boutique organising the Thailand Ukulele Festival 2011. Now the ukulele is so popular that anyone wanting to buy one has to join a long queue or book their instrument months in advance.
Phennapang has posted 62 ukulele tutorials on YouTube under the name "SuperAppleshow". In just one year, the simple lessons have attracted more than three million views.
She believes her YouTube success is down to her easy techniques and the fun elements in her teaching style.
"I think everyone can play the ukulele after watching my tutorial," says the owner of Apple Rangers, a ukulele shop in Phuket, adding that she designed the course mainly because she felt she could up with something better than the difficult guitar lessons she'd faced many years ago.
"When I was young, I signed up for a guitar course but I found it very difficult. The technique used was complex, probably unnecessarily so, so I took ages to learn. When I had the chance to teach music, I wanted the lessons to be easy. The technique I used is like a friend talking with a friend," Phennapang says.
Before recording a video clip, she chooses a song and a theme, then creates the mood by dressing and making up her face to suit both mood and theme. For some songs, she goes live.




If she went to all the trouble of studying guitar - and she is now a skilled guitarist - why has she now dropped the instrument in favour of the uke?
"That's simple," she says. "Singto recommended I give it a try."
Although reluctant at first, she agreed to join a ukulele workshop held by the singer.
And, she says with a laugh, it was love at first note.
"It easy to play and easy to carry around. It's much smaller than a guitar. I can take it with me wherever I go," she said.
Phennapang compares the uke to a woman. It's an instrument with several moods, she says. Sometimes it's sweet, sometimes naughty, other times gentle or cheerful. "Just like me," she says.
Her first how-to-clip on Singto's Facebook wall received so many encouraging comments that she decided to go one further and post an ukulele tutorial on YouTube.
"It 's not easy to make people pay attention to a four- to five-minute video clip and watch it until the end. Social media users tend not to focus on anything for long," she said
In addition to the tutorials, she answers questions on her Facebook/fanappleshow and twitter.com/superappleshow links as soon as they come in.
"If it takes two days for the poster to get an answer, he or she may give up the idea of trying the ukulele already. Be answering immediately, the instrument probably wins another devotees.
Despite her success, she doesn't plan to take the next logical step and open a music school. "I wouldn't be able to teach many people that way. Recording video clips is a much better way of reaching out."
However, she is willing to act as a guest instructor from time to time.
And while her SuperAppleshow is popular on YouTube, she'd like to see it evolve into an entertainment channel. Another dream is to have her own album.
In the meantime, she'll focus on managing her ukulele shop.
"I opened my shop in Phuket because I felt that Bangkokians had plenty of chances to buy and play the instrument and I wanted to give a chance to people in other provinces," she says.
Apple Ranger also incorporates a ukulele club where players can get together to talk about their little instruments and teach other. Youngsters who don't have the money to pay a uke of their own are invited to try the instrument for free.
"If you want to play the ukulele, give it a try. You'll quickly realise it's not difficult," she says.

Drivers pounce on cut-price fuel

MOTORISTS THRONG FILLING STATIONS AS PUMP PRICES SLASHED BY UP TO 8 BAHT PER LITRE

Petrol stations were packed with motorists queuing to buy cheap petrol yesterday as the new pump prices, which have been cut by three to eight baht per litre, started.

FILL HER UP: A staff member of a PTT petrol station on Phetkasem Road refuels a car yesterday after cuts in pump prices for 95 and 91 octane petrol took effect.

Consumers welcomed the measure, saying it would help ease the rising cost of living but cautioned they were worried it would only be short-lived.
Others urged the government to also consider cutting the gasohol price as a sharp drop in 91 and 95 octane petrol prices had resulted in motorists switching from green alternative fuels to premium petrol.
Worawit Chotiwannaporn, a 35-year-old businessman, said he normally uses gasohol but as 91 petrol had dropped to almost the same price as gasohol, he had decided to switch.
"The government should consider cutting the gasohol price too because the fuel is more environmentally friendly," he said yesterday.
Mr Worawit said he supported the Yingluck Shinawatra government's oil price cut measure. However, he was concerned it could spoil the energy-saving and alternative energy promotion efforts of previous governments.
The National Energy Policy Committee, chaired by Prime Minister Yingluck, on Friday approved the reduction of contributions by refineries to the State Oil Fund by three baht a litre for diesel, 7.17 baht for 91 octane petrol and 8.02 baht for 95 octane petrol.
This drove down the pump prices of the fuels to 26.99 baht/litre for diesel, 34.77 for 91 petrol and 39.54 for 95 petrol.
Staff at a petrol station on Bangkok's Sukhumvit Soi 105 said the number of customers doubled yesterday, with other operators across the city and nationwide reporting similar increases.
Chuang Sukka, a coffee vendor who drove a diesel pick-up truck, lauded the measure, saying it would help ease the financial burden on low-income earners.
However, he did not think cheaper petrol would lower the price of other consumer goods as the government's plan to increase the minimum wage could lead to rising production costs.
Taxi-driver Piamseree Sansukborkhum, 49, said he and his colleagues weren't benefiting from the price cut as most of them used natural gas.
He said the price of LGP and NGV should also be slashed to help taxi drivers, adding that Ms Yingluck should come up with other measures to tackle increasing living costs.
A motorcycle taxi-driver who gave his nickname as Meng said the cuts were proof that the Pheu Thai-led government was serious about helping grassroots people, as motorcycles were a large percentage of premium petrol consumers.
Fares for public transport are expected to drop following the oil price cut, but operators of natural gas-fuelled vehicles, such as private buses operating in Bangkok, insisted they would not lower their fares.
Saen Sab boat operators yesterday announced a one-baht reduction for boat fares for every trip section. Chao Phraya ferries also cut ticket prices by 50 satang at some piers.
However, the Chao Phraya Express boat operators and inter-provincial bus operators have not yet lowered their fares, saying further discussion was needed.
Suchinda Cherdchai, president of the Association of Inter-provincial Bus Operators, said the association had no plans to reduce fares.
"We won't reduce fares because we have shouldered rising oil prices for a long time," she said.
"The Transport Ministry did not allow us to raise fares even though the oil price kept rising in recent years."
Energy Minister Pichai Naripthaphan yesterday said the government would compensate petrol stations for losses incurred from the pump price slash.
Officials had been sent to 18,000 petrol stations nationwide to check the amount of petrol stocks before the new prices became effective, Mr Pichai said, adding that the government had set aside about 3 billion baht to compensate pump operators.
Viraphol Jirapraditkul, director general of the Department of Energy Business, yesterday said the agency was discussing means to slash the gasohol price.
Two potential measures include reducing excise tax for gasohol or increasing the subsidy for gasohol by using the money from the Oil Fund.
However, the latter could cause negative impact on the fund, which already lost 6.16 billion baht in monthly income from the petrol price cut measure.

INTERNATIONAL TRADE

Exports in July back on fast track
38% growth spurred by rubber and rice

After a hiccup in recent months, Thai exports regained strength in July, with a record monthly value and growth of 38.2% year-on-year, bringing the seven-month expansion to 25.7%.

Exports in US dollar terms were worth $21.52 billion in July, breaking the previous record of $21.07 billion in March. The July growth was the highest in 13 months and a huge improvement from growth of 16.83% in June and 17.58% in May.

Yanyong Phuangrach, the permanent secretary to the Commerce Ministry, said exports rose in all major sectors, especially farm products, with 53.5% expansion from a year earlier to $3.79 billion. The farm export growth was spurred by rubber (up 69.3%) and rice (110.6%).

Thailand exported $14.11 billion worth of industrial goods in July, up 37.9% year-on-year. The expansion reflected a sharp rise of 302% in exports of gems and jewellery, while gold exports surged 3.92 times to $995 million.

The steady revival in Japan's economy also helped push Thai exports in July. Growth in the Japanese market was 23% and Europe 35.5%, but the US market slowed down, expanding by only 8.1%.

Exports in the first seven months were worth $136.5 billion, up by 25.7% year-on-year.

Imports in July were worth $18.12 billion, up by 13.5% year-on-year, resulting in a trade surplus of $2.798 billion. The seven-month total was $130.25 billion, up by 26.1%, resulting in a surplus of $6.24 billion.

Mr Yanyong said the Commerce Ministry was maintaining its export growth target at 15% for this year despite foreseeable problems in some markets since exporters are seeking new ones.

"Although the new government has a policy of strengthening domestic trade and local consumption to reduce dependence on exports, exports will remain the major factor, generating income of more than $200 billion for the country this year," he said.

Sompop Manarungsan, president of the Panyapiwat Institute of Technology, said July exports rose impressively despite the global economic problems. The expansion was partly supported by growth in the Chinese market of 83.3%, compensating for the drop in the US.

Growth in the Chinese market was helped by Beijing's policy of spurring domestic consumption. New infrastructure also pushed up imports of rubber and other raw materials.

He pointed out a big surprise in the data was the 35% growth in the European market, which is still mired in debt problems and impacts from austerity measures.

He estimates exports this year will likely push GDP growth to 4-5%. Domestic consumption remains in good shape with 3-4% growth, as evidenced by the expansion of food, restaurant and retail businesses.

"The government should be careful with fiscal and monetary policy to ensure sustainability rather than growth," said Dr Sompop.

Nuntawan Sakuntanaga, director-general of the Export Promotion Department, said there were signs that exports in the second half would decline when compared with the first half.

As of Aug 24, Thailand had shipped 8.03 million tonnes of rice, up by 57% year-on-year, worth $4.55 billion, up 51%. The average free-on-board price was $567 a tonne, with Nigeria, Ivory Coast, Ghana, South Africa and South Korea the major markets.

US and EU woes to curb export growth

The growth of Thai exports may slow to only single digits in the final two months of this year given the possibility of a double-dip recession in the United States and Europe, notes a study by Kasikorn Research Center.

The centre projected that exports over the rest of this year would increase in value in US dollar terms by 13% or in a range between 6% and 17.5%.
The prediction is based on the global economy slowing as the US and Europe struggle, though this worst-case scenario might not actually occur.
However, revived supply chains in Japan will aid local manufacturing.
K-Research added farm and food sectors would remain strong this year. It forecast annual export growth of 20%.
It said that exports in July, which set a record at $21.52 billion, were supported by seasonal demand, noting if the un usually high value of gold exports were excluded, the total figure would have been lower than June.
The growth of 38.3% year-on-year in July also reflected a low base last year.
The southern office of the Bank of Thailand predicted shrimp exports will rise, especially during the harvest from August and October.
The improvement would help offset the drop of 8.2% in the volume of frozen and processed shrimp exports in the first five months of this year, resulting from diseases and floods last November and April.
Thanomchit Siripakaporn, a senior economist at the office, said renewed demand from Japan and lower supplies from Vietnam and Indonesia have increased prices.
The Thai shrimp industry is still No.1 in the world with production of around 500,000 tonnes a year, or 26% of global output, and 90% exported.

Pump prices slashed from today

Fears held for impact on bio fuels, gas prices

Prices at the pump will tumble by as much as eight baht a litre today after the government gave the green light for a measure slashing contributions by refineries to the State Oil Fund.

Energy Minister Pichai Naripthaphan said contributions and value-added tax have been cut by three baht a litre for diesel, 7.17 baht for 91 octane petrol and 8.02 baht for 95 octane petrol.
The National Energy Policy Committee, chaired by Prime Minister Yingluck Shinawatra, approved the reductions yesterday.
Ms Yingluck said the cuts formed part of the government's policy commitments made to parliament earlier this week and would help ease expenses for the public.
The Oil Fund collects contributions from sales of all fuel in Thailand. Contributions from diesel and petrol sales help subsidise alternative fuels such as gasohol as well as cooking gas.
Oil company Bangchak Petroleum last night cut its 91 petrol price by 7.17 baht a litre to 34.77 baht, with diesel prices falling by three baht to 26.99 baht a litre.
Policy-makers said cutting diesel prices would help ease pressure to raise prices across the economy by curbing transportation and logistics expenses. Transport officials said that bus and commuter van fares would also come down with the decline in fuel costs.
Mr Pichai said 91 petrol was primarily used by motorcycles drivers, while the price cuts for 95 petrol would assist drivers of older vehicles unable to use cheaper gasohol blends.
Overall, 10 million motorcycle drivers, 7 million diesel consumers and one million premium petrol users would benefit from the policy.
He insisted the measure would be only temporary. The Oil Fund is expected to lose 6.16 billion baht in income a month from the measure.
"The government will monitor oil prices and other economic factors, as well as progress in our policies to raise the incomes of lower-income workers," Mr Pichai said.
He added the energy policy committee had yet to consider any changes on excise taxes charged for fuel or whether to extend the tax cut measure taken by the last government that is due to expire next month. The government collects seven baht a litre in excise tax for 95 and 91 petrol, 6.3 baht for 95 and 91 gasohol and 0.005 baht for diesel.
Unleaded 91 petrol prices have risen by 8.5% this year to 41.94 baht a litre while diesel has been capped at 29.99 baht.
This is despite the fact that oil prices are now trading around US$85 a barrel, 7% cheaper than at the end of 2010 on worries about slower global economic growth.
Democrat deputy leader Korn Chatikavanij criticised the government's energy pricing policy as ill-conceived.
The reductions in contributions to the State Oil Fund would reduce incentives for commuters to use alternative fuels, affecting long-term energy security, conservation efforts and ethanol producers.
Mr Korn, the former finance minister, said the government would also face a challenge in raising funds to support cooking gas subsidies.
Without subsidies from the Oil Fund, local prices for a 15-kilogramme tank of cooking gas would more than double to 570 baht, in line with market prices, he said.
"The government has two choices _ float gas prices, which will affect lower-income users, or use taxpayer funds to subsidise cooking gas," Mr Korn said.
Energy experts offered mixed views on the new policy.
Siriwut Siampakdee, chairman of the Ethanol Producers Association, warned that motorists would shift from gasohol to petrol with the price changes.
"Thailand has been developing alternative fuels for over a decade and has tried to encourage its use by both motorists and auto manufacturers. I think this new policy needs to be carefully considered, otherwise [alternative fuel] policies will collapse," he said.
Thailand uses some 1.5 million litres a day of ethanol for blending with petrol to create gasohol. Energy policy-makers want to raise total ethanol production to 2.9 million litres a day.
"The government says it wants to increase alternative energy to 25% of total usage from 20%. But I see this new policy as the opposite of what it previously said," Mr Siriwut said, adding that he supported allowing prices of liquefied petroleum gas (LPG) and compressed natural gas (CNG) to float with market prices.
Energy expert Manoon Siriwan said the Oil Fund cuts should be strictly temporary to avoid hurting demand for alternative fuels, which has risen in recent years primarily due to the price advantage over unblended petrol and diesel.
Longer term, prices for all retail petroleum products should be adjusted to reflect global prices, he said.
But Prasert Bunsumpun, the chief executive of PTT Plc, said the new policy is unlikely to have a long-term impact if maintained for just six months.
He agreed, however, that subsidies on LPG and CNG should be cut to help bring prices closer to market levels and ease the burden on the state.
Payungsak Chartsuthipol, chairman of the Federation of Thai Industries, cautioned that the policy would distort the energy market and take away budget resources that could be better used for research and development and other long-term development programmes.
"The government should allow for a free market policy because when implementing a reduction policy, it's quite hard to cancel," he said.

Catering to K-POP

Thai brands are cashing in by signing K-Pop endorsement deals.

Thai teenagers' craze for Korean pop stars shows no signs of slowing down, leading more Thai companies to exploit this trend for product endorsements and marketing promotions.

Nattayoot Apiratikiat, managing director of TFS (Thailand), stands with a poster of Korean star Kim Hyun Joong at TheFaceshop store.

K-pop fever has fuelled the Thai market since the Dae Jung Geum series aired on Channel 3 a few years ago.
Osotspa Co, the distributor of 12Plus BB powder, is a consumer product that has exploited the trend to increase sales and build their brand awareness among Thai fans.
At least 15 Thai firms ranging from snacks, beverages, motorcycles, beauty clinics, contact lenses, cosmetics and candy use Korean pop stars as their presenters.
12Plus BB powder uses the Super Junior band for endorsement while Yamaha motorcycle signed stars from Tongbangshingi and 2NE 1. Super Junior's Dong Haee represents Maxim contact lenses and Scott sugar-free drink uses 4Minute, while Singha Corporation's Mashita seaweed hired Kyu Hyan, Lee Min Ho is a presenter for Dunkin' Donuts and T-MAX works for Wuttisak clinic.
TheFaceshop is the latest company to use Kim Hyun Joong, a famous Korean singer, in its marketing activities.
"It's really crazy here. Just by putting his image in our store, our sales could jump by 100% within only two months," said Nattayoot Apiratikiat, managing director of TFS (Thailand) Co, the distributor of TheFaceshop in Thailand.
TFS' latest campaign was to offer an autograph of Kim Hyun Joong for every purchase of 5,000 baht worth of TheFaceshop products.
"Believe it or not, the quota of 150 signatures was booked within two hours. It's beyond our wildest expectations," said Mr Nattayoot.
Sales of TheFaceshop in Thailand grew by 30% to 50 million baht in the first half of this year, about 20 million baht higher than its earlier projection.
TheFaceshop belongs to LG Health & Household, a branch of the electrical appliance manufacturer LG Group of Korea.
There are 26 TheFaceshop outlets in Thailand and the group expects the number to rise to 50 by 2014. Each shop requires an investment of 2.3 million baht and about 400,000-500,000 baht per counter sales. Seven new outlets will be added in the second half, including at Central Rama 9, Terminal 21, Central Plaza LardPrao and The Mall Bang Khae. The company expects sales of 90 million baht by the end of this year.
JB Kwak, TheFaceshop's overseas marketing team leader, said it plans to triple its overseas outlets to over 1,000 over the next three years, up from 356 outlets in 19 countries currently.
TheFaceshop expects its international market to grow by at least 40% per year.
"Even in Japan, which is known for supporting its local pop stars, K-pop fever has exceeded our expectations. We should be able to open more shops than we projected. At the Myeongdong tourist area in Korea, the top three spenders on our brand are Japanese, Chinese and Thai, respectively," she said.
Some 85% of TheFaceshop sales come from the local market with the balance abroad. The company aims to see an even sales split by 2014.

New gold regulations announced

 

The Anti-Money Laundering Office (Amlo) has introduced new regulations for gold traders amid soaring global gold prices.

The Gold Traders Association said on Wednesday that people who want a gold transaction worth 700,000 baht or more must now show their identification cards to gold shop operators.

Gold traders must also inform the Anti-Money Laundering Office if they buy or sell gold worth two million baht or more in cash.
The new regulations take effect on Thursday, Aug 25.
The association at 4.56pm today announced the buying price at 25,772.00 baht per baht-weight for gold ornaments and 26,150 baht per baht-weight for gold bar.
The selling prices were set at 26,150 baht per baht-weight for gold ornaments, and 26,250 baht per baht-weight for gold bar.

High gold prices have prompted many Burmese migrant workers in Thailand to sell gold they brought with them from their home country, hoping for a handsome profit, but a gold trader warns that Burmese gold is often of low purity.

The warning came from Somchai Chongnittayakan, owner of a gold shop in the Andaman Sea province of Ranong where there is a large population of Burmese workers, both legal and illegal.

He said many Burmese had come to his shop wanting to sell their gold.

Mr Somchai said had rejected the Burmese gold after checks showed it was only 91% or 92% pure.

The two standards of gold sold and bought in Thailand were 100% and 96%, he said.

Mr Somchai warned the other shops to thoroughly check the quality before buying any Burmese gold from customers.

Fake gold was also becoming a big problem, he said. If a customer looked even slightly dubious the gold shop would be better advised not to buy it.

Three common tests to tell if the gold is genuine are - a close visual examination, rubbing it with a stone to examine the metal beneath the surface, and testing the gold with fire, which is the most accurate method of all, said Mr Somchai.

ONLINE ADVERTISING PUSH

Google opens Thailand office

Global ad leader wants to raise local spending on new media
Giant search-engine service provider and creator of the Android smart-phone platform, Google, has opened a local office in Thailand.
The move reflects a commitment by Google to focus on the Thai market.
The American multinational, which is based at Mountain View in California, hosts a variety of Internet-based services and products and generates revenue mainly from advertising.
Along with the opening of its first office here, Google has announced the appointment of Ariya Banomyong, 38, as its first country head for Thailand. Having taken his new post on July 1 this year, Ariya will oversee Google's sales and business-development operations in this country.
Google's aims in Thailand are to encourage local businesses to go online successfully and to raise online-advertising spending in the Thai market from the current level of only 0.3 per cent of total advertising spending to a level closer to that in countries like the United States and the United Kingdom, which have a well- developed Internet infrastructure and where online-advertising spending is 30 to 50 per cent of total ad spending.
Ariya comes from 10 years' experience in the telecom business with True Corporation, where his last position was chief commercial officer of True Corporation's Convergence. His experience will serve Google's mission of dealing with Thailand's Internet market, which is seeing a convergence of fixed-line and mobile Internet usage.
"It is the same passion for me in working with Google," he said. "I desire to be the pioneer to help the company settle down in the Thai market - the same as I did with Orange when it brought its business to Thailand with True Corporation more than 10 years ago."
He said the beauty of his new position with Google Thailand was that it allowed him to join one of the largest technology companies in the world, while still being a pioneering leader in his home country as a new market for Google.
Thailand has around 25 million Internet users, which means more than 30 per cent of the total population are online. About 40 per cent of these users access the Internet via mobile devices. Importantly, these people are using search services every day. Of all the counties in Southeast Asia, Thailand has the highest number of searches - 55 million per day.
Ariya said the number of mobile-Internet users in Thailand was expanding rapidly, having grown three-fold in 2009 and 2010 to represent about 40 per cent of all Internet users. Every day, three out of every five Thai smart-phone users employs a search service. This figure is higher than that in many developed countries, including the US, the UK, Germany and Australia. And the most important key word of these mobile searches is "restaurant".
"Through their search behaviour, these people are obviously telling us what products and services they are looking for. Our mission is to help businesses to utilise and benefit from this searching," he said.
This gives the Thai market big potential for Google, with huge opportunities for the search-engine leader to capture. Currently, the country's total annual spending on advertising amounts to around Bt100 billion. Less than 1 per cent of this goes to online advertising, leaving more than 99 per cent of the total as Ariya's potential market - and he is, after all, representing the biggest player in the global online-advertising field.
"We don't see other players in online advertising as direct competitors because the market is very big. We all have opportunities to capture the business of those not-yet-online, and I will do my best for Google," he said.
Ariya said his priority was setting up a local team of 10 to 20 people by next year to oversee marketing, sales and operations. Then, the company will offer more products and services to local businesses. Google sees its main role as that of an assistant, helping Thai businesses - both large and small- and medium-sized enterprises - to go online and benefit from Google's products and services.
"A priority job is to educate the Thai market, including agencies, business partners and corporate customers, on how to go online successfully and what they will then find by way of products and services from Google that can bring them continued success online. For large corporations we will use a one-on-one approach, while for 300,000 SMEs in Thailand, we will assist them through marketing activities like the recently launched 'Go Online' campaign."
Ariya said he had spent about three months, involving several interviews, in the course of his appointment as Google's country manger for Thailand. After starting the job on July 1, he spent time in training at Google's operations Australia and Singapore, learning more about Google's products and services and its corporate culture. In the course of his introduction to his new company, he met Google's executive chairman and former chief executive Eric Schmidt.

POLICY RATE

BOT hikes rate by 25bps

The Bank of Thailand's Monetary Policy Committee decided to raise the policy rate by 25 basis points to 3.50 per cent in its meeting today, citing heightened inflation risks as the reason.
Inflationary pressure remains as domestic demand continues to expand. Meanwhile, fiscal stimulus poilicies could add price pressure and fuel inflation expectation despite softening in prices of oil and other commodities, said BOT assistant governor, Paiboon Kittisrikangwan.

The hike is the seventh in a
Five of the MPC members voted for the increase, while two favoured a pause.
The MPC will closely monitor the global economic condition and inflation and stand ready for policy adjustment to ensure economic stability, Paiboon said.
row after a pause in October 2010.
A majority of economists expected the hike, as domestic inflation is on the rise on continued spending. Despite growing external risks, mainly the economic outlook of the US and Europe, domestic spending remains resilient thanks to consumer confidence in political stability.

The central bank reached the decision despite notions from Finance Minister Thirachai Phuvanatnaranubala that a too high rate could hurt domestic confidence.

MARKETS

Gold spurts as stocks dip
Gold prices rallied to near $1,900 per ounce in the global market as investors continued to seek a safe haven from volatile equity markets and economic uncertainty.

Prices closed at US$1,885 to $1,886 per ounce in Hong Kong, up $23 from Friday. Local prices closed up 600 baht to set a new record at 26,700/26,800 baht per baht-weight following seven intraday adjustments by the Thai Gold Traders' Association.

The gains came as regional stock markets again went through a rollercoaster ride as investors feared the possibility of a new global recession.

The Stock Exchange of Thailand index closed at 1,067.84 points, down 0.13% or 1.36 points in trade worth 34.16 billion baht. The index fell to as low as 1,051.72 in morning trade before rallying late.

Tokyo stocks fell 1.04% yesterday, as traders braced for a new round of currency intervention to help curb the soaring value of the yen, which set a new post-World War II low of below 76 to the dollar. Seoul shares yesterday dropped 1.96%, Shanghai dropped 0.73% while Hong Kong closed up 0.45%.

Analysts said precious metal prices will likely continue to rise as investors reduce their risk exposure to stocks.

"Money is flowing from bonds and equities to gold as a safe haven. No one can say where prices will end up at, but we think we will see $2,000 per ounce shortly," said Boonlert Siripatvanich, the president of Ausiris Futures.

On the Thailand Futures Exchange, investors were betting on further gains through the end of the year, with the August 50 baht-weight contract up 240 baht to 26,700 at the evening intermission, the October contract up 610 to 27,580 baht and the December contract up 680 to 28,120.

The TFEX temporarily suspended trade of silver contracts for 30 minutes after prices rose beyond the daily 10% ceiling. Trading was allowed to reopen at 15:04 pm, with the price limits increased to 20% of the last settlement price.

At the end of the afternoon session, the August silver contract was quoted at 1,315, up 70 from Friday, while October contracts rose 133 to 1,439.

Mr Boonlert said prices were being driven by both speculation and investor fear, and cautioned investors to monitor global market trends closely.

Analysts are mixed on whether the Bank of Thailand may keep rates unchanged at its meeting tomorrow.

Diesel tax soon to be reinstated

Anusorn Sangnimnuan (right), president of Bangchak Petroleum, and Nobuyuki Murahashi, president of Mitsubishi Motors (Thailand), launch an E85-compatible Mitsubishi sedan at a Bangchak petrol station off the Ekamai-Rarm Intra Expressway. TAWEECHAI TAWATPAKORN

The government will soon reinstate the diesel tax, as oil prices have stopped spiking, says Energy Minister Pichai Naripthaphan.

The exact time frame for collection and the tax rate were not revealed.
The previous government cut the excise tax on diesel from 5.31 baht a litre to half a satang in May and waived municipal tax of 53.1 satang to honour its policy of keeping the price below 30 baht a litre.
Mr Pichai said a huge subsidy for liquefied petroleum gas (LPG) by the state Oil Fund in the transport sector could also be terminated.The move comes after the previous Abhisit Vejjajiva government already agreed on a gradual float of the LPG price in the industrial sector.
The transport and industrial sectors account for 25% of LPG consumption, the household sector 44% and petrochemicals 30%.
"We don't want oil consumers to be spoiled children who are not concerned about energy saving," said Mr Pichai.
Ironically, he said his first action in his new position would be to suspend collecting levies on premium petrol (benzene 95) and regular petrol (benzene 91) for six months. This would reduce the price of premium petrol by 7.50 baht a litre and regular petrol by 6.70 baht a litre.
Mr Pichai earlier said the Oil Fund would again collect fuel levies once the public was earning more as a result of government economic policies.
The minister said another urgent action for the ministry is to revise the country's power development plan (PDP).
The PDP is now being reviewed by the Energy Ministry in line with the global economic meltdown, and the new one is expected to be finished within the next two months.
The existing plans focus on coal-fired plants and nuclear power.

What's in store

The Pheu Thai-led coalition announces its policy statement to Parliament today. Here are the economic policies it plans to implement:

- Tax structure reforms

- Corporate income tax deduction to 23% in 2012 from currently 30%

- Tax deduction for firsthome and first-car buyers

- Village and urban community funds of 1 million baht per village/community

- SMLfundof 300,000, 400,000 and 500,000 baht

- Rice paddy mortgage

- Debt moratorium and restructuring schemes for farmers

- Progressive monthly allowances for the elderly

- Daily minimum wage hike to 300 baht

- Monthly minimum salaries for university graduates of 15,000 baht

- Credit cards for farmers to buy essentials and farm equipment

- Credit cards for public transport operators to buy fuel

- Cut levy collection for the Oil Fund for premium and regular petrol and diesel

- One Tablet per Child for primary school students nationwide

- Free public WiFi service

- Promote internet access with a goal of80%of Thai households to have ICT services by 2015

- Consolidate static concession contracts with rapidly evolving technologies and customer needs

- High-speed trains from Bangkok to Chiang Mai,Nakhon Ratchasima and Hua Hin with route connections to neighbouring countries

- Airport Rail-link extension from Suvarnabhumi Airport to Chon Buri and Pattaya

- Southern deep-sea port and land-bridge development across the Gulf of Thailand and Andaman coast

- Ten Skytrain and subway routes across Greater Bangkok to begin construction in four years, with fares cut to a flat rate of 20 baht for all routes

Better security for palm oil supply pushed

Industry wants buffer stock as insurance
The government should create a "safety stock" of at least 150,000 tonnes of palm oil to secure supplies and avoid future impacts from shortages on consumers or businesses, says an industry group.

The industry needs medium- and long-term strategies to prepare for freer trade under the Asean Economic Community in 2015, said Wiwan Boonyaprateeprat, secretary-general of the Thai Oil Palm and Palm Oil Association.

The association pressed for the creation of a buffer stock following severe shortages earlier this year because of flood damage to crops in late 2010. However, the proposal was shelved after supplies returned to normal.

Palm oil stocks are solely the responsibility of the private sector, which could lead to risks for price stability.

Crude palm olein (CPO) inventories totalled 230,000 tonnes in June and July which were quite high but there was no impact to domestic prices because businesses exported the surplus, while farmers enjoyed an average price of 5.50 baht a kilogramme for fresh palm nuts.

The Commerce Ministry still caps the retail price of bottled palm cooking oil at 42 baht a litre while products sold under its Blue Flag project must not cost more than 32 baht a bottle.

Ms Wiwan viewed that without a controlled ceiling price, palm oil prices could be even cheaper than 42 baht a litre due to abundant supply.

However, domestic prices are still not attractive to the private sector so businesses are exporting CPO to balance overall income.

The buffer stock issue is expected to be raised in the first meeting of the National Oil Palm Policy Committee once a new committee is appointed.

Ms Wiwan said businesses also wanted the new government to clarify its energy policy, especially its proposal to cancel the collection of some fuel levies by the state Oil Fund, which may in turn affect planning for palm-based biodiesel production.

She said government subsidies for biodiesel had attracted more producers, but if the gap between conventional diesel and biodiesel narrows, biodiesel producers would be reluctant to increase production.

Currently, CPO is imported from Malaysia via Thailand to southern China while Thai entrepreneurs export CPO to Malaysia.

All parties in the industry, she said, should consider long-term development to add value, such as palm-based jet biofuel, which needs economies of scale.

Apichart Jongsakul, secretary-general of the Office of the Agricultural Economics, confirmed that despite the high volume of CPO production of 230,000 to 250,000 tonnes in July, there was no surplus because of exports.

He said B4 biodiesel production required 35,000 litres of CPO a month, up from 30,000 in June.

The Agriculture Ministry estimates production of CPO will rise to 280,000 tonnes in November and 340,000 in December.

Rice exports rocket this year on low prices

Thailand's rice exports rose strongly in the first seven months this year thanks to competitive export prices with rival Vietnam and high global demand.

The country shipped out 7 million tonnes of rice during January to July this year, a 59% increase from 4.7 million the same period last year.

The average export price of Thai rice was US$565 a tonne, 4.2% lower than average prices last year but slightly higher than Vietnam rice.

The Thai Rice Exporters Association noted the discharge of over 4 million tonnes of rice in the state stockpile late last year resulted in slower price growth this year.

Indonesia, which had refrained from rice imports the past three years as part of its self-dependence scheme, resumed purchases this year after drought decimated several rice fields, said association president Korbsook Iamsuri.

Indonesia bought 628,000 tonnes of Thai rice this year and plans to import up to 1.5 million tonnes from Thailand and Vietnam by December.

Nigeria is the largest buyer this year, purchasing 940,300 tonnes of rice, up 75% against the same period last year. Next is Bangladesh, which bought 725,250 tonnes. Shipments earned the country over 90 billion baht, up by 39% year-on-year.

Robust exports should continue this month with 800,000 tonnes shipped, making the annual goal of 10 million tonnes likely, she said.

Commerce Minister Kittiratt Na-Ranong said domestic paddy prices have been climbing in response to the new rice pledging programme that plans to pay farmers 15,000 baht per tonne of paddy they mortgage with the state.

If they surpass 15,000 baht, the pledging scheme may not be necessary, he said.

"It is highly likely paddy will rise above 15,000 baht per tonne, but above 20,000 baht is not so certain," he added.

Meanwhile, Agricultural Economics Office data shows over the past two decades (1991-2010) paddy for white rice stood below 10,000 baht a tonne. The highest prices of paddy peaked at 9,848 baht a tonne in 2008 during the food crisis and were at 8,369 baht last year.

NEW GOVERNMENT POLICIES

HBA: Fine-tune proposal for low-income buyers
The government's home-finance policy should accommodate low-income earners by laying out clear guidelines for first-time purchasers in order to ensure full coverage for potential beneficiaries, says the Housing Business Association (HBA).

Interest-free home loans for five years for first-time buyers of units priced up to 4 million baht are in the works, but the final shape of the policy has yet to be decided.

HBA president Issara Boonyoung said qualifications for first-time home purchasers should be clarified, as a similar campaign implemented by the previous government limited eligibility too narrowly.

An important condition of that programme was that homebuyers had to be first-time buyers, ruling out those already registered as homeowners.

"But many residents who are not the owner of the house they live in are technically registered as such, barring them from the programme and the opportunity to own a home," said Mr Issara.

He suggested adjusting this qualification for the new campaign in order to ensure all real first-time homebuyers are given a chance to participate.

Mr Issara said the proposed maximum unit price of 4 million baht under the new scheme is too high, as anyone who could afford such a price tag could not be considered a low-income earner.

Buyers of a 4-million-baht unit will have monthly income of 100,000 baht and be eligible for special tax deductions of up to 500,000 baht for interest payments.

However, those struggling to pay one million baht for a house are not eligible for such incentives due to their low income. The new government may adopt the Baan Yim programme that the Bangkok Metropolitan Administration (BMA) offers to its civil servants.

The BMA provides interest-free loans up to a maximum amount, levying the normal rate of interest on any excess.

"This would cover a larger number of homebuyers and reduce the amount that the government would need to spend on the programme," said Mr Issara.

The previous scheme of two-year, interest-free home loans carried a credit line of 25 billion baht but had to compensate the Government Housing Bank (GH Bank) another 450 million baht in interest.

The new campaign should be implemented as soon as possible to avoid a hiccup in demand due to buyers delaying purchases while waiting for it to begin, said Mr Issara.

Otherwise, developers will have to come up with their own solutions to accelerate their housing transfers and sales.

He said commercial banks will not be able to match the GH Bank's rates, as two years is the maximum they can offer interest-free.

ECURITIES

Kim Eng relies on trading volume to maintain spot
Kim Eng Securities insists it will not jump on the bandwagon to become a proprietary business, but it remains confident it can maintain its market leader position.

The company targets net profit this year of 800 million baht, on par with last year with similar high trading volume.

"Lots of brokers are becoming proprietary businesses, but we don't want to confuse our clients. And even though others have earned big revenues from that move, we are not interested. Our parent firm Maybank is capital-rich and they can support our expansion when we need it," said chairman Montree Sornpaisarn.

The high trading volume will support its growth, and Mr Montree projects average trading volume this year to increase to 30-32 billion baht from 28 billion last year. Its SET index target remains unchanged at 1,234 points.

"Securities business in the third quarter has a positive sentiment as trading volume in July and August remains heavy, although the market is quite volatile," he said.

The company set an ambitious target earlier this year to remain market leader with a 13% share in the Thai market throughout the decade. But new players in the market have made that goal unlikely in the short term.

In the first half this year, Kim Eng reported a market share of 11.5%, down from 12.5% last year. Its accounts totalled 97,933, of which 33,383 were trading via the internet and 61,571 were cash accounts. Only half were considered actively traded accounts.

The figure was a result of institutional investors increasing their contribution to overall markets while retail investors, Kim Eng's main clients with over 90% of the company's trading volume, declined. Kim Eng is the top broker in retail brokerage business with a 16-17% market share. But it has only a 4.5% market share for local institutions and 2-3% for foreign investors."We are trying to expand our foreign investor base and expect Maybank will help in that area," said Mr Montree.

In the first six months, Kim Eng posted a net profit of 384 million baht, up from 278 million a year before, on higher average brokerage fees.

DHL touts new services

DHL Global Forwarding, the freight specialist arm of DHL, the world's leading logistics company, has consolidated its network of road freight services across Singapore, Malaysia and Thailand.

With the recent launch of the new consolidation in Kuala Lumpur, DHL's new road-freight services will provide customers with a complete range of overland freighting options.

Amadou Diallo, CEO of Africa and South Asia Pacific at DHL, said the consolidation of services would offer customers more flexibility and shorter lead times.

The service targets small and medium-sized operators with a heavy demand for road-freight services of varying volume. DHL Global Forwarding aims to meet the specific needs of the growing base of small and medium-sized operators.

The service provides a connection from Singapore to Penang with overnight delivery, as well as two-day door-to-door service from Singapore or Kuala Lumpur to Bangkok.

The scheduled regional network will extend to Vietnam, Cambodia and China soon.

TISI sets new AEC goal

Plan for 2,000 new standards by 2015

The Thai Industrial Standards Institute (TISI) plans to develop over 2,000 new standards for products over the next five years to cope with upcoming regional economic integration.

"With the start of the Asean Economic Community (AEC) in 2015, standards will become an even more important issue, especially in the auto parts, electronics and electrical appliances sectors," said secretary-general Chaiyong Krittapholchai.

The agency's goal is to develop standards in high-demand sectors for the next four years.

Some 2,235 standards were proposed by various industrial sectors and TISI believes over 80% can be accomplished by 2015, according to a questionnaire.

Businesses want to enforce industrial standards as a way of curbing imports of cheap and often substandard goods from countries such as China. Some 168 new standards were requested by the auto parts sector, 244 from machinery, 103 from processed agriculture, 297 from electrical appliances, 478 from electronics, 101 from energy and environmental conservation, 118 from rubber and rubber products and 478 from information and communication technology segments.

"Products need to adapt with changing technology, as the market will demand increased quality," said Mr Chaiyong, who admitted Thai laboratories need to be prepared to make quality checks.

TISI, which acts as a facilitator by bringing together producers, consumers and academics to gather opinions for develop standards, usually develops around 150-160 standards per year, and the target of over 2,000 standards would usually take almost 30 years, said Mr Chaiyong.

There are currently 2,822 standards under TISI.

TISI will be aided by 10 network organisations, including the National Electronics and Computer Technology Center (Nectec), the Engineering Institute of Thailand, the Occupational Health and Safety At Work Association and the National Nanotechnology Center to speed up the process of developing standards.

TISI has three certification bodies and will add the Management System Certification Institute (Thailand), the Electrical and Electronics Institute and SGS (Thailand) Ltd in the future.

"Small and medium-sized enterprises will have to adapt or they won't be able to compete," he said.

TSL Auto revs up marketing

TSL Auto Corporation, the independent premium car importer, is ratcheting up its marketing activities for the second half of this year, encouraged by a strong first-half performance.

Chief executive Sureeporn Udompolvanich credited the good results to the company's Miracle Card programme and strong after-sales services.
TSL expects to sell 960 premium vehicles this year. Sales through July increased by 53.3% year-on-year to 430 units - 60% European models and 40% Japanese.
Miss Sureeporn said 50 million baht has been earmarked for second-half marketing activities.
"We're confident our sales target will be met. Our sales staff, service centres and customer relationship management are all excellent, plus we're the exclusive local distributor of Lorinser tuning accessories for luxury Mercedes-Benz automobiles, which alone should help raise our sales revenue by 10%," she said.
More than 30 road shows were held at shopping malls and other commercial centres in the first half, and another 50 are planned for the second half.
Miss Sureeporn admitted competition in the grey market has grown tighter this year but insisted TSL has superior customer care.
She pointed to the Miracle Card programme, which provides an array of benefits to customers such as reserved parking at leading department stores.
TSL has three showrooms in Greater Bangkok: on Chaeng Wattana Road, Sathon Road and Soi Thong Lor.

Analysts expect new policy rate hike

Analysts say the Monetary Policy Committee (MPC) could lift the policy interest rate again tomorrow to strike a more neutral stance, but growing risks in the US and Europe threaten to make future decisions a tougher call.

The market fears a banking crisis on top of fiscal debt concerns about the euro-zone economies including Greece's debt crisis possibly compelling that country to exit the zone.

As well, a weak economic reading of the US and Standard & Poor's downgrade of sovereign debt for that country have led to a sharp downward revision by many research houses.

Concern is growing that the US may be facing another economic downturn.

But most analysts believe the National Economic and Social Development Board's recent downward revision of Thailand's full-year economic growth forecast is only a temporary effect of Japan's supply chain disruption in the wake of the March 11 disaster.

Usara Wilaipich, a senior economist at Standard Chartered (Thai), expects the MPC will increase the policy interest rate by a quarter-percentage point to 3.5% tomorrow and then hold it.

Price pressures may ease in the coming months as economic growth moderates after last year's strong rebound.

"Strong domestic demand will lead the MPC to deliver this final rate hike," said Ms Usara.

"Inflation will peak worldwide in the third quarter, while oil prices are easing as people's fears about the world economy grow."

She said strong growth in bank lending, steady increases in farm incomes and enhanced political confidence are among the factors bolstering consumers' purchasing power.

The government is expected to fulfil election promises such as increasing the daily minimum wage and tackling inflation by, for example, reducing oil prices through eliminating the Oil Fund contribution.

If the MPC holds the policy interest rate steady after tomorrow's expected increase, then it will still remain in negative territory after inflation.

However, Ms Usara said the gap could narrow if inflation eases.

"The MPC has increased the rate steadily for eight rounds, and we expect inflation to ease off," she said.

But HSBC economist Wellian Wiranto expects the MPC will increase the interest rate by half a percentage point this year to 3.75%.

The MPC's assessment of global economic trends after tomorrow's meeting will be an important deciding factor come October or November, he said.

"Upward price pressures deriving from the removal of price controls may play out in the coming quarters," said Mr Wiranto.

"Measures such as 100,000-baht tax breaks for first-time home and car buyers are inflationary by nature."

Kampon Adireksombat, a senior economist at Tisco Securities, said direct and indirect Thai exports to the US and Europe have declined to 29% since 2009 from 44% in 2000 due to diversification and Asia's growing importance in world trade.