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Summary
Discord between red shirt factions and the Phue Thai party carry on and the result was made clear during the mayoral election in Chiang Rai this week, which saw Phuea Thai lose to the Bhumjaithai Party. Also in the political headlines is the death of Ampon Tangnoppakul, a.k.a. “Uncle SMS”, the 62-year-old grandfather who was sentenced to jail for 20 years on charges of sending SMS messages that had insulted the monarchy. Ampon’s case had garnered controversy due to the harshness of his sentence and the vague evidence presented by the prosecution. In economic news, the Commerce Ministry has announced price controls for 20 staple items, such as rice and soap. Due to complaints, it has also included ready-to-eat items to its list. As well, Thailand’s government froze energy and transportation prices as another measure to control the costs of living. On the security front, Thailand continues to cope with issues on its borders. This week Thailand announced, along with its partners, another round of joint patrols on the Mekong River. Meanwhile it’s also grappling with its foreign relations with Cambodia, whom it is pressuring to acknowledge the problem of illegal loggers trespassing into Thailand from Cambodia.
Politics
Political infighting between the Pheu Thai Party and red shirt communities continues as disappointment over the governments’ performance takes hold. Pheu Thai suffered its third electoral defeat in two weeks, losing the Chiang Rai mayoral election to Bhumjaithai Party candidate Wanchai Chongsutnamani. As with previous Pheu Thai defeats, red shirt supporters increasingly opt to contest the election themselves or support a non-MP nominated candidate because they feel they have yet to benefit from the government they originally helped to elect.
Another internal strife is the possible appointment of red shirt leader Jatuporn Promphan as deputy interior minister. The proposal has received criticism from Pheu Thai MP Chalong Riewraeng. Chalong explained that Jatuporn should first clear his name regarding his supposed lese majeste offence. Even if he did though, Chalong warned Prime Minister Yingluck to reconsider bringing someone into the cabinet who was involved in the 2010 unrest and the “burning of the city”. Pheu Thai MP and red-shirt leader Korkaew Pikulthong argued that Chalong’s comments confirmed suspicions that Pheu Thai MPs from the Central region were campaigning against Jatuporn’s appointment. The Department of Special Investigation has meanwhile dropped the lese majeste charges against Jatuporn, DSI director general Tarit Pengdith announced on May 10.
In regards to a possible Pheu Thai – red shirt split, red shirt chairwoman Thida Thavornseth stated that it would all depend on the future direction of the Pheu Thai Party and if it would remain a party for the masses, adding “We have to consider what kind of political party it is; if it’s a party of capitalists who think they have money and can win – many MPs think so – if they don’t care about the masses, the red shirts, and only want canvassers or want to change the red shirts into canvassers. In that case, the red shirts will have to decide if it will quit, be part of the party or be a fighting agency.” (Bangkok Post) (The Nation)
Major headlines in both national and international Thai coverage this week were over the death of Ampon Tangnoppakul, also known as “Uncle SMS” and Ah Kong at the Corrections Department Hospital . The 62-year-old grandfather was convicted of lese majeste on November 23, 2011, for allegedly sending four SMS messages to Somkiat Krongwattanasuk, secretary to then prime minister Abhisit Vejjajiva in May 2010, that were defamatory to the King and the Queen. This claim, however, was never proven by the prosecution and was always denied by Ampon, who stated he would not even know how to send a SMS. He was nonetheless sentenced to 20 years in jail and denied bail eight times, although he suffered from liver cancer. While opposition leader Abhisit Vejjajiva and Green Politics Group coordinator Suriyasai Katasila already warned the red shirts not to use this incident for political gains, reform minded groups like The Campaign Committee for the Amendment of Article 112 announced they will step up their activities to prevent “more loss and damage”. Committee member Suthachai Yimprasert , lecturer at Chulalongkorn University’s Faculty of Arts, announced that they would submit a draft amendment of Article 112 to the House of Representatives on June 27. United Front for Democracy Against Dictatorship (UDD) chairwoman Tida Thawornset rejected any criticism of exploitation of Ampon’s death by the UDD, stating that activists of the UDD were seeking amendment of Section 112 and hoped for a review of legal proceedings including the granting of bail and medical treatment for inmates. Thai academic Pavin Chachavalpongpun called Ampon’s death “a slap in the face of the Thai hyper-royalists who have employed the draconian lese majeste law as a political weapon to control differences in political views in society”. According to an autopsy at the Police General Hospital, Ampon died from liver cancer.
With both the government and opposition repeatedly rejecting any intention to even think about amendments to Section 112, no movement is expected even after Ampon’s death. This is despite a speech from His majesty King Bhumibol Adulyadei explicitly stating that he wasn’t opposed to criticism of the monarchy. (Bangkok Post) (The Nation) (The Diplomat) (Financial Times) (The Wall Street Journal)
Information and Communication Technology Minister Anudith Nakornthap finally signed a contract with Shenzhen Scope Scientific Development for the first batch of 400,000 computer tablets, worth 2.4 billion baht. According to the contract all tablets have to be delivered within 60 days, which Scope chairman Liu Jun is confident of being able to fulfill, as they are able to produce 20,000 tablets per day. After the first batch of Scope Tablets passes government quality control standards, another batch of 530,000 will be ordered. The model features a seven-inch touch screen, a 1.2 GHz single core CPU, 1 GB RAM, a storage memory unit of 8GB, Google’s Android 4.0 Ice Cream Sandwich operating system, and a GPS navigation system and includes a two-year warranty for the device and one-year for the battery. (Bangkok Post)
Economics
The Commerce Ministry is prepared to set up a special operation center, which will specifically monitor the living cost situation and the prices of 20 necessity goods, such as rice, vegetable oil, soap and washing detergent, among others. The Commerce Minister will directly supervise the center to focus on methods to ease the burdens of the initial production costs for manufacturers and increase options for the public. Due to the complaints about overpriced food, the Commerce Ministry has announced a new decision to include ready-to-eat food in its list of price controlled goods, in addition to 42 other items approved in January. The price control measures will initially apply to popular daily dishes, including those available on the street. The targeted areas will include food courts in supermarkets, fresh markets in community and business areas, and the measure will initially focus on provinces where the 300 baht minimum daily wage has been imposed. According to Minister Boonsong Teriyapirom, all the measures are expected to be finalized next week. Furthermore, Prime Minister Yingluck Shinawatra optimistically expected the coming rainy season to help ease food prices as crops would be abundant and cheaper in the rainy season. Also, the government had launched a sale campaign for essential goods to help people cope with the high cost of living.(National News Bureau of Thailand) (Thailand Business News) (Bangkok Post) (The Nation)
Following the announcement of the underground train system operator Bangkok Metro Company Plc (BMCL) to increase fares from the current range of 14 – 36 baht to 16 – 40 baht which are scheduled to rise on July 3, the Cabinet authorized Transport Ministry to ask the subway operator to delay the fare adjustment plan. (Bangkok Post)
The government of Prime Minister Yingluck Shinawatra froze energy prices and transportation fares on Tuesday, May 8, as an effort to slow down domestic price rises. The Energy Policy Committee agreed to delay a plan to increase the price of compressed natural gas (CNG) and liquefied petroleum gas (NGV) for the transportation sector for three months. According to Deputy Prime Minister and Finance Minister, Kittiratt Na-Ranong, the Cabinet will also continue to extend a cut in fuel tax, which is scheduled to expire this month. On the other hand, Democrat Party and Opposition Leader and former Prime Minister, Abhisit Vejjajiva, criticized that the government needs to understand that freezing energy prices would just briefly prevent product prices from rising but will not lower the cost of living as product prices have already gone up; instead, the government needs to revise its entire economic policy.(Wall Street Journal) (Bangkok Post)
The supply of condominiums in Bangkok and its suburban areas showed a 31 percent growth in the first quarter this year following recovery in the residence demand in March and April this year after last year’s floods disrupted the market. Most new condominium projects are located close to the mass-transit system because most homebuyers prefer locations that they can conveniently travel to work. According to Plus Property Co, a subsidiary of Sansiri, condominium’ market price is likely to rise 1-2 percent due to increase in demand and the rise in construction cost.(The Nation)
Last year, Thailand stepped up one place to 11th in the ranks of the world’s top destinations by international tourism receipts, according to UN World Tourism Organization (UNWTO). Thailand was among five global destinations whose international tourism receipts grew by 5 billion dollars or more in absolute terms in 2011 among United States, Spain, France and Hong Kong. The country’s tourism income rose by 6.2 billion dollars to a record 26.3 billion dollars. Moreover, Thailand’s 2011 receipts and ranking remarkably surpassed two main competitors in Southeast Asia which are Malaysia and Singapore. (Bangkok Post)
India, the second largest rice grower after China, will surpass Thailand to match Vietnam as the world’s biggest exporter after favorable weather and higher government prices boosted the harvest and due to a weaker rupee. Thai rice exports had slowed down since Prime Minister Yingluck Shinawatra’s attempts to boost farmer incomes through state purchases last August. Indian rice is now approximately 100 dollars cheaper than supplies from Thailand, which is paying above market prices to farmers. (Bloomberg)
The Stock Exchange of Thailand’s main index fell by 1.38 percent on Thursday, May 10, as worries about the euro-zone crisis and weak Chinese trade data weaken investors’ sentiment. Analysts mentioned worries about the European debt crisis and the recent political changes in Greece and France, which could affect policies, will continue to put pressure on market sentiment in the near future. Meanwhile, a slowdown in Chinese exports also heightens worries about global economic growth. The SET president, Charamporn Jotikasthira, recommended investors to focus on stocks with good fundamentals to withstand negative global factors.(The Nation) (Bangkok Post)
Fitch Ratings has affirmed Thailand’s long-term foreign and local currency issuer default ratings at BBB and A-, respectively, with stable prospects. Meanwhile, the agency affirmed its short-term foreign currency at F3 and its country ceiling at BBB+. Fitch viewed that Thailand’s ratings reflect strong external financial position and sign of political stabilization. However, the Kingdom still has high risks in policy management and risks to fiscal transparency in the government’s tendency to resort the off-balance sheet channels to achieve its policy goals. Fitch sees that the Kingdom has broader structural weaknesses, and the flood measures and policies pledge under current administration will drive up public debt. Moreover, public disagreement between the Bank of Thailand and the government over the conduct of monetary policy could cause problems for coherence of policy management and may ultimately compromise central bank independence. (Bangkok Post)
Security
This week regional law enforcement agencies announced the fourth joint patrol of the Mekong River, with the first patrol boats set to leave at the end of the month. The joint patrol combines the efforts and capacities of law enforcement from Thailand, Laos, Myanmar, and China. Following the same route as the previous three patrols, the boats will start at Guanlei Port in Xishuangbanna, China, and end in Chiang Saen, Thailand. Joint patrols of the Mekong River began at the urging of China, after the killing of 13 Chinese sailors on two cargo ships on October 5 of last year. Security analysts say that rampant drug trafficking along the river contributes to the danger of armed confrontation. (China.org.cn)
Following Thailand’s move to put him on its most wanted list for drug dealers, Maj Gen Na Kaw Muay of the Democratic Karen Buddhist Army (DKBA) ordered his troops to seal off the Thai-Myanmar border in Karen-controlled territory parallel to Tak province in Thailand. Additionally, he is, by some reports, alleged to have issued a threat to Thais living in Tak. However either his tone has changed or the reports conflict, because at a press conference this week he indicated he would be willing to allow Thai anti-narcotics agents into KDBA territory to investigate claims against him. In pursuit of Maj Gen Na Kaw Muay, Thailand’s government has asked Myanmar’s authorities to arrest the ethnic rebel leader. (Bangkok Post) (The Nation)
Sayed Kassem el-Masry, ambassador of the Organization for Islamic Cooperation (OIC) and special envoy on Thailand, met with Thailand’s Foreign Minister Surapong Tovichakchaikul to discuss Thailand’s handling of the southern insurgency. Mr. Masry expressed concerns over the emergency decree’s use in the three southernmost provinces, citing its potential for leading to human rights abuses. But he lauded the government’s nuanced recognition that the insurgency was not merely about religion, but rather rooted in culture and identity. He also praised the Thai government’s development policies and encouraged Thailand’s leaders to consider education as a potential solution to the problem. During his visit to Thailand, Mr. Masry also traveled to Hat Yai to meet with prominent spiritual leader, Asis Phithakkhumphol, and visited neighboring Pattani. (Bangkok Post) (The Nation)
In Narathiwat, 20 militants attacked a military base in Ruso district on Wednesday evening. Chief investigator of the Narathiwat police, Pol Col Sathanfa Wamasing, said that the base was home to the Narathiwat Task Force 30, and that the attack lasted about 30 minutes. Two militants were killed and one soldier was wounded. The rifles recovered from the militants’ bodies were found to be rifles that had been previously stolen from Narathiwat Task Force 38 in an attack on January 19th of this year. Police also recovered four homemade hand grenades. (Bangkok Post)
Following a deadly fire last Sunday at a petrochemical factory in Map Ta Phut that killed 12 and injured 129, Prime Minister Yingluck Shinawatra has directed a tripartite committee to investigate the level of local contamination. The factory where the fire occurred has since been shut down by Industry Minister Pongsvas Svasti. The prime minister has also ordered nationwide safety inspections of all factories that use flammable chemicals or that which can cause toxic air pollution. If in violation, an offending company will face difficulties in renewing its operating license. (Bangkok Post)
The Thai Foreign Ministry is urging Cambodia to admit that its citizens are engaged in illegal logging in Thailand. This move comes after repeated arrests and clashes along Thailand’s border with Cambodia, in which Thai authorities say illegal loggers are coming from Cambodia. In response, Cambodia’s government has asked that Thai troops to not fire on Cambodians, but has not addressed the issue of trespassing directly. It has also rejected accusations from Thailand’s army of deliberately placing land mines along the border to retaliate against Thai troops who fire on poachers.
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