Summary
In politics, the NCPO sets out its intentions to eliminate corruption within the transport sector and put in place electronic ticketing machines at Suvarnabhumi International airport to avoid taxi fare hikes. Further efforts to regulate migrant workers are also promised, with new registration offices to be opened, and temporary work permits to be issued. In further efforts to regulate and monitor the spread of (mis)information the NCPO has set up five panels to target every branch of the media. Whilst they have ensured that this move is aimed at encouraging national reconciliation, concerns have been stated by journalists in terms of media rights and freedoms.
In security, the United States has blocked around 152.7 million baht in security-related aid to Thailand and is considering plans to relocate the annual US military exercise ‘Cobra Gold 2015’. At the same time they have downgraded Thailand to TIER 3 in human trafficking. Attacks in the three border provinces of Yala, Pattani and Narathiwat continue to escalate and the government promises to restart peace talks with southern insurgents and all related parties to the conflict. In other news, the dead body of a 13 year old missing girl was found next to a railway line after being attacked, urging an increase in security measures on railway transport.
In economics, inflation was down for the first time in ten months. Business optimism in Thailand has seen significant growth. Some point to exports while some expect more economic growth from domestic products this half of the year. Although tax revenue falls short, tax investigation of rich called off. NCPO approves subsidy to assist farmers. Some rice farms may face problems of drought. Thai Chamber of Commerce to present economic plans for the future. Business in the Northeast of Thailand is growing rapidly.
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Politics
(Source: Bangkok Post)
The National Council for Peace and Order (NCPO) is continuing in what it claims to be its bid to eliminate the country’s endemic corruption, and have vowed to begin regulating taxi services, particularly at Suvarnabhumi International Airport which they say is controlled by taxi ‘mafia gangs’ trying to extort new arrivals. The three-step plan of the military government’s task-force in charge of this mission involves preventing ‘influential people’ from meddling in taxi services, increasing the ability of the government to address all transport-related problems, and lastly ensuring the reform is sustainable. Plans include installing electronic ticketing machines at the airport, and standardizing fares to destinations outside of Bangkok. (Bangkok Post) Meanwhile, taxi operating representatives claim that the so-called ‘mafia gangs’ are simply trying to get a fair amount for their services and have called for an increase in taxi fares as a way of addressing the problem. (Channel News Asia)
Plans have also been made to add a green strip to the orange vests worn by motorcycle taxis in Bangkok in order to eliminate those who are unregistered but have illegally paid up to thousands of Baht for one. The new vests will include the identification card, number, and the name of the zone in which he/she operates in. The move intends to prevent the practice of giving bribes to secure a spot in the city. (Bangkok Post)
In an attempt to counter international condemnation towards the military coup, particularly from the US and EU, Thailand is looking to strengthen diplomatic ties and win the support of its regional neighbors. Meetings have been held with authorities from Malaysia, China, Cambodia, and Myanmar. (Reuters) The Chinese Ambassador to Thailand has given praise to the coup, for reviving Chinese business confidence in the country. (Bangkok Post)
The NCPO has created five new panels to monitor all content in every branch of the media. It aims to prevent the media being used as a tool to spread ‘misinformation’ about the work of the NCPO and other matters, including any provocation against the monarchy. Representatives in the panels include members of the Royal Thai Army, the Royal Thai Navy, the Royal Thai Air Force, the Royal Thai Police, the Foreign Affairs Ministry, the Office of the Prime Minister, the Public Relations Department, and other state agencies. Targeted sectors include foreign media, social media, print, radio, and television. The Thai Journalists Association and the Thai Broadcast Journalist Association have criticised the move, condemning the guidelines as too broad, and likely to harm the rights of the media. They have urged for clearer guidelines as to what they are allowed to report on. The NCPO however, have insisted that this is a move aimed at encouraging reconciliation in the country, rather than curtailing media freedom. (Bangkok Post)
The NCPO has now held talks with all parties it believes to be relevant for national reform, including the Pheu Thai Party, Democrat Party, People’s Democratic Reform Committee (PDRC), and the United Front for Democracy against Dictatorship (UDD). The Committee for Reconciliation and Reform (CRR) claims to have gathered over 1000 opinions on 11 different categories regarding reform. Once all opinions have been compiled, they will be sent to NCPO chief General Prayuth Chan-ocha. Members of the UDD, however, have claimed that the talks were too short to discuss issues in much depth, and followed only the terms of the CRR. (Bangkok Post)
Yingluck Shinawatra has voiced her complaints about the refusal of the National Anti-Corruption Commission (NACC) to call eight more witnesses to testify in her defence regarding the rice-pledging scheme and the corrupt practices connected to it. The ousted Prime Minister claims that this could lead to her disadvantage in the trial and ultimately an unfair outcome, arguing that three of the additional witnesses could prove that 2.97 million tons of rice were not missing as was claimed by the subcommittee overseeing the scheme’s accounts. The NACC refused her request last month, stating that they have enough evidence. The investigation is expected to last until September, after which the outcome will be announced. (Bangkok Post)
Security
(Source: Time)
Thailand
On Tuesday, July 8 the dead body of a 13 years old missing girl was found next to the railway line from Surat Thani to Bangkok. An employee of the company, State Rail of Thailand, confessed to throwing her body out of the window after attacking and raping her. He admitted to taking amphetamine and drinking beer with friends before committing the act. As a result of this case the SRT governor promises an improvement of security measures on all trains, and plans to ask the Royal Thai Police Office to increase the number of railway police for the safety of passengers and crime prevention. (Bangkok Post)
In response to the military coup in May, the United States blocked around 152.7 million baht in security-related aid to Thailand. Other bi-lateral co-operations such as the annual US military exercise “Cobra Gold” 2015 was also halted by the U.S. government due to Thailand’s current political situation. (Bangkok Post)
The United States of America downgraded Thailand from the TIER 2 Watch List to Tier 3 in the annual TIP (Trafficking in Persons) report for human trafficking. Tier 3 is described as: “countries whose governments do not fully comply with the minimum standards and are not making significant efforts to do so.” (U.S. Department of State) There is no exact number of victims in human trafficking but the estimated number goes into the tens of thousands. Most of the migrants are from neighboring countries like Laos or Burma, for example, where most of the migrants come from to flee conditions of poverty and to seek economic opportunities. Thailand and its economic status as a middle income country offers better opportunities for workers.
There are two sectors of human trafficking. The first one is forced labor especially in fishing-related industries, factories, domestic work or low-end garment production. The second one is the commercial sexual exploitation, especially on women and young girls.
In 2010 a study done by UNIAP (UN Inter-Agency Project) on Human Trafficking found out that Thai authorities deport over 23,000 Cambodian trafficking victims per year, which is about 23% of all Cambodians in Thailand. Mostly the victims are foreign (undocumented) migrants, ethnic minorities and stateless persons (see Trafficking in Persons Report 2012). Thailand’s 2008 anti-trafficking law criminally prohibits all forms of trafficking and prescribes penalties ranging from four to ten years imprisonment. (U.S. Department of Sate; Bangkok Post)
In 2013 the ILO (International Labor Organization) reported that “[…] 17 % of around 600 fishermen in Thailand said they worked against their will and were unable to leave for threat of financial penalties, the threat of violence or being reporting to authorities.” (CNN)
The Cambodian Ambassador to Thailand, Eat Sophea, has pledged her support for the NCPO’s intention to regulate Cambodian migrant workers, encouraging a focus on improving their working conditions and respect of human rights. Chackrit Suwannasarn, Executive Director of Silver and Gold Development Placement Co. submitted a proposal to the NCPO urging a new registration process for migrant workers. He claimed that since the mass-exodus of Cambodian migrant workers following the coup, the military government have made weak advances in tackling the problem of illegal migrants and human trafficking. Without proper databases and regulations, these workers are at high risk of exploitation, particularly within the fishing sector which has recently come under heavy scrutiny.
Records of fishing vessels, operators and crew were out-of-date making it difficult to target those employing illegally, or engaging in human trafficking. Farm, factory and domestic workers also face high risk of abuse, says Marja Paavilainen, chief technical officer at the International Labour Organisation, who has called for much stricter law enforcement against those involved in these crimes. NCPO have set up centres across the country, and plan to open more, for migrants to register and obtain temporary work permits allowing them 60 days while they apply for proper permits. This grants the workers labour rights, as well as protection against trafficking. (Bangkok Post)
Deep South
In the Deep South attacks remain prevalent and the insurgency in the three border provinces of Yala, Pattani and Narathiwat continue to escalate. If deemed necessary regional chiefs in these provinces can still impose a short curfew to maintain order at a limited time from 9 p.m. to 3 a.m. (Deep South Watch; Bangkok Post)
In the last two weeks six people – policemen and civilians – were killed by bombs or gunshots, and many more injured in Yala, Pattani and Narathiwat (see HDFF Monthly Security Report, June 2014). The Southern Women Overcoming Violence Network stated that womens’ security in this region is a large concern and demand the creation of safety zones by the SBPAC (Southern Border Provinces Administrative Centre). They urge more help be given for developing and empowering the role of women in finding solutions to the conflict and “[…] bringing the region’s woes to an end.” (Bangkok Post)
The National Security Council (NSC) will continue peace talks with Southern insurgency representatives, especially after the last attack on a mini-bus on the July 8 in which eight civilians were wounded. (Bangkok Post)
Economics
(Source: Bangkok Post)
For the first time in ten months inflation was down from 2.35% to 2.23% reported the Ministry of Commerce on July 1, 2014. An adviser to the ministry, Ampawan Pichalai accredited this to NCPO regulations on cooking gas prices, diesel prices and certain product prices. The Ministry of Commerce estimates inflation to change between 2.00-2.80% during the year, averaging around 2.4%. The second hand housing market has also improved since the second quarter due to the NCPO taking action and the resulting calming political situation. (Bangkok Post)
The International Business Report (IBR) conducted by the consultancy Grant Thornton saw a significant growth in business optimism in Thailand in the second quarter. Of the 21 areas measured, 20 saw an increase, only ICT Infrastructure dropped from the previous quarter. This trend should result in increased investment in sales effectiveness as companies will try to sustain the current optimism. Globally, export growth expectations are high. This focus on exports can be seen as an indication of the importance of cross-border trade for the sustainability and growth of businesses. (The Nation)
While some point to the importance of exports in the coming future, Krungsri Group expects the most influential aspect of economic growth to be domestic consumption. Senior Vice President of the research department of the risk management group at Krungsri, Roongsak Satutum, doubts that global economic growth would help Thailand that much. Countries like the U.S. that are adjusting levels of export and import don’t display high demands for imports. And while Thai export growth could grow 1-3 percent, Roongsak believes that domestic consumption will be the key economic factor for Thailand as there is now a functioning government. Therefore, investors are encouraged to focus on the domestic field the second half of this year. (The Nation)
Tax revenue continues to be low. Government collected taxes and tax revenue from the Revenue Department and the Customs and Excise Department all fall below expected targets. Though tax revenue has fallen short, Revenue Department’s director-general, Prasong Poontaneat has called off the tax investigation on the wealthy, those with 40 million baht properties and cars valued at 3 million baht. The director general assumes the wealthy that can afford such luxuries had also paid taxes respective of their income. The planned tax investigation had caused some panic among the wealthy and the sales of luxury and residential properties began to drop. Mr. Prasong urges an increase in efficiency of tax collection for what remains of the year and increased valued-added tax on imported goods. (The Bangkok Post)
The National Council for Peace and Order (NCPO) approved a farmer subsidy scheme of 4.79 billion baht. 4.7 billion baht is designated to reduce rice farmers’ production costs for the 2014-2015 crop. Backers say the scheme will cut production costs 432 baht per rai farmed from the 4,787 baht per rai average. Farmers will also be offered 3 percent interest loans of up to 50,000 baht for six months. The remaining 90 million baht from the 4.79 billion baht scheme will go to importing shrimp in order to aid farmers with losses due to disease. (Bangkok Post)
The Ministry of Agriculture and Cooperatives made a statement that farms without forms of irrigation may face drought this season after low rainfalls thus far. Permanent Secretary Chavalit Chookajorn warns that the current levels of water are only enough for irrigated farming areas. The Royal Irrigation Department has advised that rice farmers who work with low water supplies to wait to plant to avoid loss (Bangkok Post)
The Thai Chamber of Commerce (TCC) will present plans on July 16, 2014 addressing foreign workers, income disparity, economic zones and trade. Seven business associations will present the plans at a Joint Public-Private Consultative Committee to the NCPO. Plans will be divided into three parts. Short-term plans will be initiated during the interim government and medium and long-term plans will be implemented by the elected government to come. A primary issue to be addressed is the income disparity between Thais, especially between industry and agriculture, which is much lower. (Bangkok Post)
Businesses in the Northeast of Thailand are growing rapidly said head of the Department of Industrial Promotion, Atchaka Sribunruang. Last year, the Northeast contributed around 10% of the gross domestic product. Atchaka stated that the business in the region grew as the Northeast became a more important gateway to other nations. She has said that the military rule has not changed the state of trade and investment in Thailand. Foreigners still trust the possibilities of Thailand. She suggests that Thai business attention be paid to not only Southeast Asian buyers but also buyers in other Asian nations. (Bangkok Post)
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