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Summary
In a move that has attracted significant attention, speculation, and even revulsion, Prime Minister Yingluck Shinawatra visited General Prem Tinsulanonda, president of the royal Privy Council, to pay respect to the elder statesman in the post-Songkran rod nam dam hua ceremony. The two reportedly met for thirty minutes afterward, signaling what could be an important step towards bringing the reconciliation process to some kind of a resolution. Anxious about the proposed wage hikes, business owners across Thailand are asking for a delay in the measure, citing that businesses need more time to prepare. Meanwhile, in a sign of the times, the Central Land Transport Control Commission has approved fare hikes for public buses and song-thaews across Thailand. In security, Thailand’s southern region was rocked by more violence. However, in a shootout with militants, Thai authorities claim they killed a key leader of the insurgent group Runda Kumpulan Kecil (RKK). In Bangkok, authorities seized another 86, 740 methamphetamine pills and 941 grams of crystal methamphetamine in a house in Thonburi district. And finally, a new medical study reveals that malaria on the Thai side of the Thailand-Myanmar border has become increasingly resistant to current forms of treatment.
Politics
After official visits to China and Japan to discuss economic cooperation as well as water management and cooperation on a high-speed bullet train, Prime Minister Yingluck Shinawatra led a group of government representatives, consisting of Kittiratt Na-Ranong, Yongyuth Wichaidit and General Yutthasak Sasiprapa, to a highly symbolic meeting with Privy Council president Prem Tinsulanonda. General Prem, considered to be an arch-rival of exiled former Prime Minister Thaksin Shinawatra, doled out the traditional Songkran rod nam dam hua blessing. Afterwards, Gen Prem held a discussion with Prime Minister Yingluck, which lasted about 30 minutes, in a meeting which political analysts see as a move to help bring Thaksin back to Thailand. Kasian Tejapira, of Thammasat University’s political science faculty, argued that the meeting between the two rival camps might lead to reconciliation with a blanket amnesty for both sides but admitted that this would be a “raw-deal” for the red-shirts, stating, “It’s sad to say, but it may be the only feasible political deal at the moment, given the present balance of political forces.” To counterbalance the deal, Kasian proposed an immediate amnesty, release, and bail for political prisoners and lese majeste detainees as well as a reform of the lese majeste law. Puangthong Rungswasdisab, political scientist at Chulalongkorn University, argued in a similar fashion that the Thaksin family was willing to reconcile with Gen. Prem to bring Thaksin back home. The red shirt faction in the Pheu Thai Party might not accept the deal though says Puangthong, adding, “If such an amnesty-based reconciliation law is enacted, I believe the Pheu Thai Party will split. If it’s not broken altogether, it will lose a large support base especially from the red shirts. A blanket amnesty law is a direct affront to what the red shirts have been fighting for, namely justice for the dead.” Woravat Au-apinyakul, the prime minister’s Office Minister of the Pheu Thai Party, acknowledged the disappointment of the red shirts but stated that it was time for reconciliation. Joshua Kurlantzik, on the Council on Foreign Relations blog, argued that by coming home through an amnesty deal, Thaksin surrenders one of his main advantages, namely, “that he, unlike his opponents, is willing to sacrifice greatly for some real reconciliation.”
The United Front for Democracy against Dictatorship (UDD) handed the Pheu Thai Party a not-so-subtle reminder about their importance in the April 21 by-election in Pathum Thani, in which a low voter turnout of 35 percent was recorded (compared to 75% in the general election of 2011). This led to Pheu Thai losing the seat formerly held by MP Sumeth Ritthakanee, who resigned, to Democrat candidate Kiatisak Songsang. Pheu Thai spokesman Prompong Nopparit attributed the loss to discontent over the governments’ handling of the flood crisis as well as the election being held on a Saturday, a day when Pheu Thai supporters had to work. Thawee Surarittikul, a political analyst at Sukhothai Thammathirat Open University, attributed the election loss to the disappointment inside UDD factions, stating “The red shirts suspect that the government is not serving them and instead trying to help only Thaksin. When Thaksin said he was not in conflict with Gen Prem that raised their suspicious [sic] because it was totally different from his remarks in the past when he urged the red shirts to come out and protest against the Democrat-led government.” Then the UDD side perceived the controversial meeting between Prime Minister Yingluck and Gen. Prem comes at a time when chief army General Prayuth Chan-ocha announced that the army would not support any political sides. In a message to PAD supporters he clarified that they would not be allowed to use military compound for their protests because ”the army belongs to the people, not certain groups.” (Bangkok Post) (The Nation) (Council on Foreign Relations)
Two scandals rocked Parliament in recent days. First an MP was caught looking at a picture of a “half-naked” woman on his phone. The Thai-language daily Matichon identified the MP as Democrat Nat Bantadtarn, the son of former Democrat Party leader Banyat Bantadtarn. The parliamentary session later came to a halt when monitors flashed the picture of an Asian woman in a provocative pose. Democrat MP Nat later apologized, saying friends sent the picture to tease him. Only days later Bangkok Senator Rosana Tositrakul accused MPs of voting for other absent MPs with their identity cards left behind. Rak Thailand Party leader Chuwit Kamolvisit, at a press conference, presented a button camera in his suit jacket, stating he has videos of MPs reaching to other panels to vote. According to the videos both Pheu Thai and Democrat Party representatives are involved in the scandal. Pheu Thai MP Wiwatchai Hotrawaisaya admitted to be the person in the photo Senator Rosana presented, but stated that he was just stretching. Pheu Thai MP Jirayu Huangsap rose to defend his colleague saying that the panel Wiwatchai was reaching for had no slot for an ID card, while Prompong Nopparit, spokesman for the ruling Pheu Thai Party, assumed the new scandal might be aimed at distracting the public from the one involving Democrat MP Nat Bantadtarn. (Daily Telegraph) (The Nation)
Chinnicha Wongsawat, niece of former Prime Minister Thaksin Shinawatra and Pheu Thai MP, has been banned from politics for five years by the Supreme Court for a false financial declaration. According to the verdict she failed to disclose a debt of 100 million baht when she became a lawmaker last year. The Pheu Thai Party announced it would appeal against the ban. (Associated Foreign Press)
In the ongoing debacle to provide school children across the Kingdom of Thailand with tablet computers, Education Minister Suchart Tadathamrongvej had to admit that the government had to switch to their alternative plan – plain, simple textbooks – as no finalized contract with the Chinese supplier could be reached yet. Inside sources blame the Shenzhen Scope Scientific Development Company for making last minute changes and backtracking on many of their promises, such as guarantees on its products or post-sale service centres (from 30 to 12). Additionally, the Chinese company tried to negotiate for an advance guarantee from the Thai side and a partial payment as well as parts of the production burden to be taken over by the government. (Asia One) (The Nation)
Economics
Prime Minister Yingluck Shinawatra embarked on a three-day official visit to China, April 17-19, where she met with Chinese President Hu Jintao. In a statement she said China and Thailand will continue to strengthen friendly exchanges at all levels and enhance mutual trust and friendship. The two leaders also agreed to upgrade bilateral links to a comprehensive strategic cooperation partnership and aim to boost mutual investment by 15 percent and increase bilateral trade by 20 percent annually over the next five years to reach 100 billion US dollars by 2015. Meanwhile, the Thai premier attended the roadshow which was held from 17-20 April in Beijing. According to the Industry Minister Pongsvas Svasti, the roadshow received a very good response from Thai and Chinese investors and yielded much success in attracting Chinese investment, business match-making, and embracing the bilateral collaboration. Over 65 billion baht worth of investment is expected to flow into Thailand after this official visit. (Xinhua) (Bloomberg) (Thailand Business News)
After her visit to China, Prime Minister Yingluck Shinawatra joined the 4th Mekong-Japan Summit in Japan which occurred on Saturday, April 21, together with leaders from the Greater Mekong Sub-region (GMS)– Cambodia, Laos, Vietnam, Myanmar – and Japanese Prime Minister Yoshihiko Noda, who chaired the event. The Thai Premier has praised the Japanese government for pledging 7.4 billion US dollars aid to help develop infrastructure and transport in five Mekong region countries, including Thailand. (MCOT online news) (Bangkok Post)
The Finance Ministry has proposed a three-year debt moratorium for good state-bank customers whose debts are no more than 500,000 baht. The ministry expects the new scheme to cover 3.76 million borrowers with combined outstanding loans of 459.11 billion baht. The borrowers can either choose to get an interest reduction by 3 percentage points from September 1, 2012, through August 31, 2015, or to suspend payments on the principal for three years plus the 3 percentage point interest rate cut. If the scheme is approved by the Cabinet, it will cost taxpayers 22.85 billion baht as a subsidy to support state-run banks which participate in the project. Critics have commented that such a debt moratorium would be a moral hazard, which would harm state-run banks and push the burden to taxpayers. However, Deputy Finance Minister Tanusak Lekuthai claimed that it is an opportunity for lower-income groups and expected to help boost Thailand’s GDP. (The Nation) (The Thai Financial Post)
Business owners have urged the government to postpone the minimum wage hike in 70 provinces to 2015. According to Suwanchai Lohawatanakul, secretary general of the Association for Promotion of Thai Small and Medium Enterprises, companies need time to adjust and that government should also provide soft loans and labor skill development to the SMEs. Tourism Council of Thailand vice president Thaniwan Kunmongkhon also requested the government to consider coming up with more measures to cushion the impact from this wage hike. Nevertheless, Labour Minister Padermchai Sasomsap had announced on April 20 that the new minimum wage deadline will maintained the starting date on January 1, 2013, while the minimum wages in 7 provinces including Phuket and Bangkok has already been in effect since April 1. The minister stated that the policy would draw back Thai workers who are now moving abroad to chase higher pays (The Nation) (Asia News Network)
The Central Land Transport Control Commission has approved a fare hike of no more than 0.04 baht per kilometer for public bus operators running between Bangkok and other provinces, and for inter-provincial buses. The fare for two-row passenger vehicles or song -thaew in Bangkok will increase to 7 baht. Minibus fare will also rise from 6.50 baht to 8.50 baht. The new fares will come into effect on May 15. However, Bangkok Mass Transit Authority (BMTA) buses operating in Bangkok and its vicinity will only see a fare increase once the NGV price rises from 8.50 to reach 9.50 baht per liter. As for the new taxi fare, the Department of Land Transport will conclude the new rate, responding to the government’s policy to raise CNG price, to submit to the Ministry of Transport for further approval by the cabinet in May. The new rate for taxi is expected to come into effect in June. (National News Bureau of Thailand) (The Thai Financial Post)
One of Thailand’s main fitness operators, California Wow, is being sued in a lawsuit filed by Bangkok Bank for its unpaid debt. In reporting the bankruptcy lawsuit to the Stock Exchange of Thailand on Wednesday, April 25, California Wow disclosed that Bangkok Bank had filed a bankruptcy suit with the court seeking payment of 71.9 million baht in debt and 3.97 million in interest.
If the court declares the company bankrupt, the club members can file claims for damages from the Legal Execution Department. George Saab, the company’s chief of staff, told the Stock Exchange of Thailand it was continuing to make progress in its rehabilitation plan and said the bankruptcy suit could result in difficulties in acquiring future bank finance. (Bangkok Post)
Security
In two separate incidents, Thai security forces in the South engaged in firefights with members of the insurgency group Runda Kumpulan Kecil (RKK), resulting in six dead insurgents and one injured policeman. In the first incident, on April 20, a group of 40 Thai soldiers, made up of paramilitary rangers and police, sealed off a village in Yala province after receiving intelligence reports that militants were hiding inside. After gunfire erupted between the two sides, five bodies of men believed to be RKK militants were recovered. One of them was Sakueri Japakiya, a key leader within the RKK who had seven outstanding warrants for arrest. The second firefight occurred on April 22 in Ruso district of Narathiwat. After police surrounded the home of a wanted RKK militant, the man climbed on the roof and exchanged gunfire with security forces. Police shot and killed the suspect, though one policeman was wounded from the explosion of an M67 grenade thrown by the suspect. (Jakarta Globe) (Bangkok Post)
A school in Narathiwat was burned on April 18 prior to the scheduled visit of Deputy Prime Minister Yuthasak Sasiprapha and General Prayuth Chanocha. The school was set ablaze when security volunteers temporarily left their posts for their prayers. Following the incident, a roadside detonated about 300 meters from the school when a vehicle of security force members, composed of police and soldiers, hurried to inspect the scene. Police believe insurgents set fire to the school in order to ambush security forces coming to respond. Reports do not indicate that the bomb struck the vehicle. (The Nation)
Narathiwat was the setting of more violence this week. On Monday, a village headman was shot dead by gunmen with an M16 and an AK-47 in front of his home in Sungaipadi district. The village headman had been attacked by militants before and had apparently tried to fight back on the morning of his murder, as he was found with a 9mm pistol in his hand. On Tuesday, in Tak Bai a bomb hidden in a pushcart injured eight people, one seriously, including a 3-year-old boy. Five of the injured were members the Narathiwat Task Force 36, which was most likely the intended target of the attack. On Wednesday, two men were killed in a drive-by-shooting incident as they rode a pickup truck in Bacho district. The victims had been driving home from a fresh market in Saiburi district when they were attacked by gunmen, armed with M16s and AK-47s, in another pickup truck. The victims’ truck swerved and hit a tree, where gunmen unloaded more bullets into the victims before fleeing. (Bangkok Post)
There was a close call in another incident in Narathiwat’s Rueso district, when a village defense volunteer sitting in front of his unit’s building noticed a mound on the ground which appeared to have been freshly dug. After brushing away the soil, he discovered an explosive device made out of a fire extinguisher. Bomb squad personnel were able to jam the local phone signals – to prevent detonation by cell phone – while they disarmed the 20kg-bomb. (Bangkok Post)
In Pattani, a security volunteer was killed as he rode his motorcycle to an assignment at a local school on Monday. Attackers were reportedly riding in another vehicle as they shot him with an M16 and a .38 revolver. (Bangkok Post)
This week, Thailand’s cabinet approved a 2.08 billion baht budget of compensation payments as part of a “healing” process for victims of violence in the South. According to Justice Minister Pracha Promnok 500 million baht will go to ordinary civilians, about 200 million baht is for state officials, about one billion is for those who suffered as a result of the operations of state forces, and the remainder, about 300 million baht, is for those being detained or facing legal action as a result of the violence in the South. However, Deputy Prime Minister Yutthasak Sasiprapha reported at a recent Cabinet meeting that during his visit to the South, locals told him they had been approached by strangers demanding a 20% cut of their compensation payments. Defence Minister General Sukampol Suwannathat has ordered soldiers in the South to look into the matter. (Bangkok Post) (Phuket News)(The Nation)
In a series of raids on Nakhorn Sri Thammarat prison this week, Thai authorities have confiscated 333 mobile phones, 31 SIM cards, over 1,7000 pills of methamphetamine, at least 50kg of ya ice, several “sharpened objects”, and 47,000 baht in cash. Out of 1,282 inmates, 655 tested positive for drugs in urine tests. Three officers in the prison have been fired after being implicated in smuggling drugs. Authorities suspect that two major drug gangs have linked up in the prison, forming what the provincial police chief calls the country’s biggest drug network. Reports state that as they are already in prison, traffickers are unafraid of arrest. Moreover, current law prohibits authorities from taking further action against any inmate who continues the drug trade in jail until one year after being sentenced. (Bangkok Post)
In a related development, Bangkok authorities have seized 86, 740 methamphetamine pills and 941 grams of crystal methamphetamine and made three arrests in connection. The stash was found in a house in Thonburi district. Police also reported that they had arrested three monks in Nakorn Ratchasima’s Pimai district for testing positive for ya ba. Authorities were tipped off about the trio after arresting their dealer. (Bangkok Post)
Speaking to the media this week, Depart of Special Investigation (DSI) chief Tarit Pengdit revealed that cold medicine containing pseudoephedrine had been transported into Thailand from South Korea nine times in 2010 under false claim forms. Pseudoephedrine, a common cold medicine, is the key ingredient in methamphetamine. The unveiling of such news highlights the very complex problem authorities face in controlling the substance, as it shows that regional cooperation is crucial in combating drug trafficking. (The Nation)
The Ratchaprasong Square Trade Association (RSTA) has invested 50 million baht in a closed-circuit security system in Bangkok’s most important shopping district. Under the new system, 1,300 security cameras have been installed in key areas, such as the skywalk area, the Erawan shrine, and 11 surrounding buildings. Further, the RTSA has trained 1,000 personnel in security measures, self-defense, and preventing crime. The move is part of an overall strategy to make Ratchaprasong a “zero-crime area,” according to RTSA president, Chai Srivikorn. (Bangkok Post)
A recent medical study published in the journals The Lancet and Science confirms that strains of malaria on the Thai side of the Thailand-Myanmar border have become increasingly resistant to the current standard treatment, artemisinin. The study draws upon data collected from blood samples that were gathered from infected patients between 2001-2010. From the data, scientists are able to demonstrate an increase in resistance on the Thailand-Myanmar border. For example, the number of slow-clearing infections rose from 0 .06 percent in 2001 to 20 percent in 2010. Researchers have since between able to identify seven genes in collected malaria strains they believe are responsible for the resistance, which they say explains 35 percent of the growing resistance of malaria in the Southeast Asia region. Despite this breakthrough, however, the trend of increasing resistance is worrying because the disease could spread and researchers say a new malaria drug is unlikely to reach the market before another decade. (Phuket News)
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