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Published on March 11, 2008

And Mingkwan just waved his magic wand again yesterday, as if to impress the chief further.

Just when the world is being haunted by new highs among oil prices, Mingkwan successfully convinced 12 goods manufacturers in Thailand to cut their product prices 5-30 per cent.

Oil futures yesterday, although retreating from the record high of US$106 (Bt3,300) per barrel last week, were still as high as $105 in Singapore. Certainly, oil is much higher than $90 a barrel, the level seen late last year, when so many consumer-product manufacturers started crying foul over the government's delayed approval for price increases.

So it is a BIG wonder how Mingkwan flexed his muscles to convince all 12 big companies to cut prices.

Representatives of the 12 firms declined to comment yesterday about why they agreed to do his bidding.

However, some hinted the temporary price cut would only provide a temporary "feel good" environment for consumers. Eventually, they plan a price increase if costs keep rising, particularly in the second half of the year.

At that time, despite his victory yesterday, Mingkwan will need to ponder new strategies on how to handle the future.

A television host on Channel 3 yesterday said some businessmen now wanted the Commerce Ministry to play a bigger role. The ministry should be the intermediary in buying up raw materials for local manufacturers. Buying in bulk should result in lower prices, which would help local manufacturers cut their product prices.

Hmm, a sensible proposal. Still, a marketer-by-training like Mingkwan may find this more difficult than thinking about marketing strategies.

Moreover, you have to wonder, if the Commerce Ministry does take on this duty, would it not be better for local manufacturers to combine their forces for higher bargaining power?

Then the Commerce Ministry, as the regulator, would ensure that the rules were fair to all. That means large companies would not have any advantages over small ones.

Mingkwan may want to play this role. It would be a challenge, and if he succeeded in this mission, he would again prove his worth to the chief.

Whatever. I'm sure Samak will have kind words again to Mingkwan on his programme next Sunday.

Achara  Deboonme

achara_d@nationgroup.com

The Nation