HDFF Bi-Weekly Thailand Review 15/10 – 26/10
- Anti-government protest groups at the Royal Turf Club (PATIPAT JANTHONG)
Summary
PM Yinluck reshuffled the cabinet and not included red shirt leader Jatuporn Promphan. Furthermore, on Sunday, October 28, a mass rally, organised under the leadership of Gen Bunlert Kaewprasit, in opposition to the Yingluck Shinawatra administration took place at the Royal Turf Club of Thailand.
The Bank of Thailand will shift its policy from a restrictive to a more open foreign investment regulation for Thai companies. Domestic auto sales exceeded one million in the first nine months of 2012.
Police and army were on guard as it was the infamous Tak Bai massacre’s anniversary this Thursday. Several attacks took place.
Politics
At the beginning of October Prime Minister Yingluck Shinawatra still adamantly proclaimed that no cabinet reshuffle was planned in the near future but this week, at the end of October, sent a list of cabinet changes to HM the King for royal endorsement. What might be the most important part of this reshuffle was Yingluck’s decision not to include red shirt leader Jatuporn Promphan, despite sources claiming that her brother Thaksin Shinawatra promised him a cabinet seat. It has to be seen which effect this will have on the Pheu Thai-United Front for Democracy Against Dictatorship (UDD) relationship. The Nation argues that leaving Jatuporn out in the cold as well as the PM’s decision to stick with Kittiratt Na-Ranong as Finance Minister against Thaksin’s wishes was proof that Yingluck was now more confident and has a considerable role in big decision, making her more than just a puppet controlled by her brother. Some analysts on the other hand speculate that Thaksin might have changed his mind regarding Jatuporn to work on a compromise with the country’s elite regarding his own legal struggle and would thus not want to enhance the red shirts influence on the government. Another extended Shinawatra family member, Pol General Priewpan Damapong, brother of Thaksin’s ex-wife Khunying Pojamanna Pombejra, was also expected to receive a cabinet post after he applied for party membership while some sources proclaimed that his membership application hints towards his wish to become an MP not cabinet member as no party membership was needed for a cabinet post. In replacement of former Pheu Thai party leader and Interior Minister Yongyuth Wichaidit sources confirmed that Transport Minister Charupong Ruangsuwan would switch ministries and become Interior Minister as well as take over as Pheu Thai party leader. Yingluck’s third cabinet will also include former core members of the Thai Rak Thai party as their five-year political ban ended earlier this year. Pongsak Raktapongpaisal will become Energy Minister while Pongthep Thepkanchana will step in as Deputy Prime Minister and concurrently taking over as Education Minister, replacing Suchart Thadathamrongvej. (Bangkok Post) (The Nation)
On Sunday, October 28, a mass rally in opposition to the Yingluck Shinawatra administration took place at the Royal Turf Club of Thailand. Organised under the leadership of Gen Bunlert Kaewprasit, chairman of the Protect Siam (Pitak Siam) Organisation and former adviser to the army, the rally was destined to receive huge media coverage after Gen Bunlert proclaimed that, “If I had soldiers under my command, I would have ousted the government a long time ago.” (The Nation) He provided three main reasons why the current administration should be ousted. Firstly, certain groups in the government would continue to attempt to overthrow the monarchy. Furthermore the administration serves as a proxy for the exiled Thaksin Shinawatra and additionally has turned a blind eye towards corruption. Although Gen Bunlert denied the red shirt accusation that his group would be nothing more than a splinter group of the People’s Alliance for Democracy (PAD), main speakers of the event are also members of the PAD movement. While Pheu Thai spokesman Prompong Nopparit argued that the rally would be nothing more than a prelude to the no-confidence debate initiated by the main opposition Democrat Party, Prime Minister Yingluck Shinawatra as well as the UDD movement announced that the Pitak Siam group would have the constitutional right to rally and would thus not be interfered. UDD lawyer Kharom Polthaklang in January 2012 filed a complaint with the Crime Suppression Division against Gen Bunlert (and PAD co-founder SondhiLimthongkul), accusing them of inciting unrest and urging the military to mount a coup by speculating about attempts to overthrow the monarchy. (Bangkok Post) (The Nation)
Economics
The Bank of Thailand will shift its policy from a restrictive to a more open foreign investment regulation for Thai companies. This means in particular a removal of the direct investment restriction for Thai individuals, a raise of the amount limit per investor, more permitted types of securities and fewer regulations for transfers of foreign currency. Next week, the first regulation is supposed to be eased, giving Thai residents the possibility to invest in foreign currency-denominated bonds issued and offered in Thailand. With its policy adjustment, the Bank of Thailand aims to cope with the growing tendency of Asian countries to guard their currency by encouraging Thai individuals and companies to invest abroad. (Bangkok Post, The Nation)
The 3rd Generation of telecommunications technology (3G) auction was conducted on October 16th despite the attempt of Thailand Telecommunication Management Academy president Anuparp Thiralarp to halt it. However, the results are still an issue. Thailand’s three mobile phone service providers spent 41.6 billion baht to win their 15-year licenses (Advanced Info Service [AIS] 14.6 billion baht, Total Access Communications [Dtac] and True Corp 13.5 billion baht). This is only 2.8% more than the NBTC’s combined minimum reserve price. After the Administrative Court rejected his petition on Monday, Suriyasai Katasila, a core member of the Green Politics group, said he will petition the Ombudsman to act against the 3G auction claiming the bids were too low. As newspapers reported on Tuesday, the National Broadcasting and Telecommunications Commission (NBTC) announced a “statement of intention” that forces the three 3G bid winners to slash charges for their voice and data services by 15-20% before they can start providing 3G services. This shall help calm public concerns that the auction held last week unfairly rewarded private operators at the expense of consumers and the state. (Bangkok Post, The Nation)
Pannee Sathavarodom, the chairwoman of the Government Savings Bank (GSB) board, is unlikely to have her term renewed, as the Finance Ministry is considering changing seven members, says a senior official. Mrs. Sathavarodom has been criticized for her refusal to renew GSB president Lersuk Chuladesa’s contract after his four-year term expired in July and for her self-appointment to chair the search committee for a new president. (Bangkok Post)
Domestic auto sales exceeded one million in the first nine months of 2012. This happens for the first time. According to Toyota Motor Thailand’s vice-president Vutigorn Suriyachantananont, sales increased by 71.3% year on year due to continued strong demand, overall production increases to speed up delivery, and the acceleration of tax rebates for first-car owners. The biggest sellers were Toyota (380,751 units), Isuzu (150,003) and Honda (106,444). As a consequence of the growing number of cars, the Department of Land Transport is introducing a new license plate numbering system, placing a numeral in front of the two Thai alphabet characters – for example, 1กก XXXX. The new plates are likely to be issued from December on. (Bangkok Post)
The Board of Investment (BoI) changed its promotional investment criteria. The changes will be put into effect early next year. The criteria, which currently cover more than 200 project types, need to be changed to be in line with the government’s development strategy, investor demand and global economic trends, said Udom Wongviwatchai, the new BoI secretary-general who took office last week. At present, BoI privileges vary depending on project location, with industries located in Greater Bangkok receiving the fewest incentives. The new criteria give priority to projects in the sectors of creative industry, environmentally friendly practices, value-added industries, software, fashion, movies, alternative energy, tourism, biotechnology, health care and logistics. (Bangkok Post)
Security
Police and army were on guard as it was the infamous Tak Bai massacre’s anniversary this Thursday. Deputy Prime Minister Yuthasak Sasiprapha and army chief Gen. Prayuth Chan-ocha visited the South to check the security situation and urge the local authorities to take extra precautions. Furthermore, they met with 1,000 Muslim religious teachers from the region to appeal for their help in keeping the event calm. On October 25, 2004, a demonstration in front of a police station in Tak Bai had been cracked down by the military. During the transport of the protesters to a detention camp, 85 people had died – most of them had suffocated. On top of the 3.5 million baht previously paid out to the victims’ families, 4 million baht were promised to be further handed over to them. In Yala’s Raman district, authorities reportedly crossed a preparation plan which possibly aimed to attack with a car bomb on the anniversary. On the Tak Bai-Narathiwat road, militants were able to fire grenades at a checkpoint on Wednesday night, but no one was harmed as they missed their target. (Bangkok Post) (The Nation)
Furthermore, the southern part of the kingdom was target to several other attacks: For example a security guard for a drug rehabilitation center in Pattani was shot dead in Muang district on Monday, when he returned home from his work. (Bangkok Post)
Landmines still pose a serious threat in the Thai-Cambodian border region. In Sa Kaew’s Khok Sung district, an elderly woman lost her leg when she stepped on a landmine while digging for edible roots. The explosive device was a relic from the conflict between the Cambodian government army and the Khmers Rouges guerrillas in the border region over 15 years ago. Although both governments tried to clear the area from remaining mines, there are still many inaccessible places, which are marked. (Bangkok Post)
On Monday, a policeman was revealed as being involved in drug-smuggling while passing a checkpoint in Lampang. Investigators discovered 1.2 million methamphetamine tablets and about 5 kg of crystal methamphetamine in his car. After he rammed his vehicle through the checkpoint, he fired at pursuing officers. However, he surrendered to the police on Wednesday. The policeman confessed that he regularly smuggled drugs from northern Thailand to Bangkok and that he was involved in a trafficking network containing more policemen. Indeed, a crime suppression police inspector in Chiang Mai was removed from duty after a large amount of methamphetamine pills were found at his home, and a sub lieutenant from Mai Ai district police was arrested after 32 pills were found in his pocket. (Bangkok Post)
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