Thailand Travel News

More than 10,000 Red Shirt supporters of Thaksin Shinawatra rallied Friday as organisers said that one million Thais had signed a petition asking for a royal pardon for the fugitive former premier Mr Thaksin, who was ousted in a 2006 military coup.

He fled Thailand last August to avoid a two-year jail term for corruption, but still enjoys huge support among the rural population. A court found him guilty in a case involving government land purchases and he was sentenced to two years jail.

But government politicians say the petition drive is not legal, as a person must already be serving a prison sentence before seeking a pardon. While the petition is unlikely to have legal consequences, it threatens to renew political tension between rival political groups that have staged sometimes-violent protests over the past three years.

The protest in Bangkok took place despite warnings from the government that a pardon could only be sought by Thaksin himself or by his relatives. Billionaire Thaksin was ousted in a military coup in 2006.

More than 10,000 people had gathered at the Sanam Luang parade ground in downtown Bangkok by late afternoon. Nearly 3,000 police were at the rally site, police commander Lieutenant General Worapong Chiewpreecha said.

Thailand’s government is considering holding a referendum on an amnesty for banned politicians before elections next year, in an effort to appease opposition groups and restore Thailand’s battered image as a stable democracy.

The vote would likely focus on overturning a five-year ban on 220 lawmakers, many loyal to former premier Thaksin Shinawatra, who was deposed in a 2006 coup. The bans took effect after courts disbanded their political parties, fueling clashes between Thaksin supporters and opponents.

The effort to restore political credibility come as the Southeast Asian country tries to fight its way out of recession. However, this amnesty would not include Mr.Thaksin as he is charged with a crime. The popular former leader fled Thailand last year before a court sentenced him to two years in prison on corruption charges. He claimed the trial was unfair.

Abhisit created a multi-party reconciliation panel to draft constitutional changes after protests in April. Political parties will now consider the panel’s recommendations before a wider debate starts in Parliament next month.

Former Prime ministers Samak Sundaravej, Somchai Wongsawat and Banharn Silapa-Archa are among the banned politicians. Dozens of former cabinet ministers and rural kingpins who had relatives stand in their place would also be free to run for office again if the country voted for an amnesty.

Three people were shot dead and three security officials wounded in gun and bomb attacks by suspected militants in Thailand’s troubled Deep South, police said on Tuesday. The incidents took place in Pattani, one of three rebellious Malay Muslim provinces where nearly 3,500 people have been killed in violence since 2004.

A Buddhist rubber tapper and his wife were shot on their way to work in the province’s Khok Pho district early on Tuesday by attackers armed with assault rifles. The incident took place in Pattani, one of the three Muslim-majority provinces in Thailand’s south.

The attacks come amid a spike in violence during a five-year insurgency in the area that has left at least 3,700 people dead.
Ethnic Malay rebels waged a low-level separatist struggle against the Thai state in the 1970s and 1980s, but that was settled with an amnesty for militants.

The violence restarted in January 2004 with a brazen raid on an army base, where militants looted more than 400 rifles, only a few of which have been recovered. Most of the violence in Thailand’s south has been blamed by authorities on Muslim armed separatist groups.

The fighters in Thailand’s southern provinces have not specifically stated their motives, but they are thought to be fighting to establish an independent state in the three Muslim-majority provinces.

A four-day seminar kicks off in Bangkok, aimed at building business linkages and opening trade, investment and tourism opportunities between Thailand and China.

Around 400 Chinese investors will confer with their Thai counterparts in an attempt to boost investment of “no less than 20 billion Baht (589 million U.S. dollars) this year” between the two countries, local media reported Saturday.

The Chinese investors, of whom some 300 are outstanding members of business associations worldwide, will participate in a four-day meeting with Thai investors starting 26^th July, which could lead to business synergy between the two groupings.

The bilateral trade between China and Thailand started 34 years ago as the trade volume between the two countries was valued at 36.0 billion U.S. dollars last year.  In a related development, Thailand’s Board of Investment (BOI) secretary-general Atchaka Sriboonruang Brimble said over 200 Chinese businessmen participating in this Forum has already had investment plans.

Over the past five year on average the value of the Chinese investment projects applied for the BOI privileges stood at five billion baht (147.16 million U.S. dollars) per year. Chinese investors are keen to invest in plastic, processed foods, medical equipment, metals for construction and alternative energy.

Terrorist attacks in the villages of southern Thailand have reached an all time high as schools have become breeding grounds for young fighters in the conflict between Muslim insurgents and Buddhists.

Muslim militants in provinces that border Malaysia are attacking Buddhist monks and temples, and fellow Muslims suspected of working with the Thai government. Muslim militants in provinces that border Malaysia are attacking Buddhist monks and temples, and fellow Muslims suspected of working with the Thai government.

The Thai government’s extension of emergency decree powers in the southern Thailand has led rights groups and academics to call for more civilian control over the region. There is renewed attention on the six-year-old insurgency following the recent bombings in Indonesia.

Thailand’s government says it hopes to end a Muslim insurgency in the southern provinces within three years by improving laws and helping local politicians to better respond to residents’ needs. The violence in Thailand’s three southern provinces is getting new attention after last week’s bombings of luxury hotels in the Indonesian capital of Jakarta.

Since early 2004, the insurgency has claimed over 3,500 lives. Shootings and bombings happen almost daily. The Cabinet has recently extended emergency decree powers governing the provinces, leaving the region largely under military control.

The Thai economy is likely to recover this year and enjoy positive growth next year given the global economic resilience and low inflation rates, according to the Bank of Thailand (BoT). According to the Bank of Thailand deputy governor Bandid Nijathaworn, the economy has cross the worst phase and gross domestic product (GDP) will move into the black next year although inflationary pressure will increase.

Earlier, the Bank of Thailand had decreased its GDP projection for this year to a negative growth of 1.5-3.5 per cent and forecast the GDP would turn around to grow at 1.5-3.5 per cent next year. The deputy governor added that Thailand’s current policy rate of 1.25 percent is already low and is not impeding economic growth.

The central bank kept its key rate unchanged at 1.25 percent last week for a second straight meeting after cutting it four times since December.

Mr.Bandid said that the liquidity in the monetary system is still adequate as it is five times higher than the Bank of Thailand’s standard, and commercial banks should see no problem in approving loans.

The Finance Ministry’s has ordered for seven state-owned banks to make loans totaling 1.25 trillion baht for the entire year which would help the private sector and stimulate the economy.

Meanwhile, Finance Minister Korn Chatikavanij said the Revenue Department has announced an exemption from withholding tax on bank savings accounts which earn no more than 20,000 baht interest a year.

Thailand’s export volume in June was US$12,335 million, a drop of 25.9 per cent year on year, while exports totaled US$11,398 million, down 29.3 per cent on June last year. This resulted in a trade surplus of US$937 million in June.

For the first six months of this calendar year, total exports were US$68,207 million, a drop of 23.5 per cent compared to the same period last year, and total imports US$57,216 million, a 35.4 per cent drop.

However, on a yearly basis, Thailand’s shipments fell for an eighth month in June, decreasing by 25.92% compared with $16.65 billion in the same month last year. The trade surplus for the first half amounted to $10.99 billion compared with $573.3 million last year.

Thailand’s July exports are expected to be much better as the government steps up its export stimulus measures, such as facilitating export credit to ease exporters’ credit and business matching between local producers and foreign buyers.

Exports, which make up about 60 percent of the economy, haven’t risen since October. The price of rice, of which Thailand is the world’s largest exporter, last month, averaged $581 a ton, 33 percent less than a year ago.

Orders to electronics, computer and food producers have improved, Rachane Potjanasuntorn, director general at Export Promotion Department, adding the outlook for the automotive and jewelry industries remains unclear.

The Thai government will close 435 schools, 200 nurseries, and 13 occupational training centers for five days in Bangkok to prevent the spread of the H1N1 flu virus. Thailand has reported total of 4,057 cases of H1N1 also known as swine flu since Mid May.

Meanwhile Thai Prime Minister Abhisit Vejjajiva will address the country through TV to calm the panicked public, together with senior doctors from the health ministry. The planned television comes as the public ministry reported three more deaths due to the virus infection bringing the total number of deaths to 24.

The World Health Organisation said on 13-July that H1N1 virus was unstoppable and gave drug makers full go ahead to manufacture vaccines. The WHO raised the global flu alert to the highest level on June 11, declaring a pandemic was under way from the H1N1 strain.

Although the new disease has so far caused only mild symptoms in most patients, more than 400 people have died globally and experts fear the death toll could surge without a widespread immunisation programme.

In related news, Bangkok Metropolitan Administration (BMA) plans to distribute 2 million face masks to city residents and it will encourage Bangkokians to wear the protective gear in public areas.

The Public Health Ministry will spend 600 million baht to buy 2 million doses of H1N1 vaccine from Sanofi Pasteur, and another 250 million baht on 10 million tablets of the anti-flu drug oseltamivir.

The human rights issue will be the highlight during the forthcoming ASEAN Ministerial Meeting (AMM) in Thailand. Thailand is going to host the 42nd Association of Southeast Asian Nations (ASEAN) Ministerial Meeting (AMM), Post Ministerial Conferences (PMC) and 16th ASEAN Regional Forum (ARF) in the southern province of Phuket from July 17 to 23.

Attending the 15th Non-Aligned Movement (NAM) Summit in the Egyptian resort of Sharm El-Sheikh, Thai Foreign Minister Kasit Piromya reassured the nine ASEAN counterparts plus 16 dialogue partners that Thailand is well prepared to host the upcoming ASEAN meeting with intensified security plans to safeguard the ministers and participants.

U.S. Secretary of State Hillary Clinton has confirmed her participation in the forthcoming ASEAN meetings in Thailand starting from Friday. The U.S. Secretary of State will attend the meeting as a dialogue partner of the group and also take part in the ASEAN Regional Forum meeting.

The theme for these meetings is “Acting Together to Cope with Global Challenges.”

The Thai government will decide tomorrow whether to increase savings bond issue after the first 30 billion baht were snapped up in a buying frenzy across the country within hours. In some banks, the entire allocation was taken by a single customer within minutes leaving angry crowds who were left out.

The 50 billion Baht issue is being sold to raise funds for stimulus measures drawn up by the government to lift the economy out of recession. The overwhelming demand left about 30,000 senior citizens unable to buy bonds from the seven banks assigned to sell them.

The government decided to offer 30 billion baht — instead of the 15 billion baht originally planned for the first tranche for Thai citizens or residents aged at least 60 — since advance demand was so strong. The government plans to offer a 15 billion tranche on July 15-16 to the same group of senior Thai citizens and residents as well as general investors.

The overwhelming demand was attributed to the average interest on the five-year bonds of 4%, compared with 0.75% interest on fixed deposits. The government required a minimum purchase of 10,000 baht and imposed a ceiling of a million baht.