State enterprises body looking into state banks' problems
The State Enterprises Policy Commission is considering proposals from state banks to solve their problems, the governor of the Bank of Thailand said yesterday.
Prasarn Trairatvorakul, also one of the independent members of the Superboard, said it is still in the process of appointing two more committees.
The committee that has already been established is considering proposals from the Small and Medium Enterprise Development Bank of Thailand and Islamic Bank of Thailand to strengthen their shaky status.
“The secretary of the Superboard has ordered the first committee to oversees the proposals from the state banks on how to improve their situation, which is in line with the process that was set up and as requested by the Finance Ministry,” he said.
Once all three committees are formed and functioning, they will consider all the proposals and options that are presented to them.
They will announce to the public their decisions and findings once their plans have been firmed up. – Erich Parpart, The Nation
capital market body takes ltf plea to revenue department
The Federation of Thai Capital Market Organisations has met the Revenue Department with the expectation that the tax deduction for long-term equity funds will be extended.
“This is to show that the capital market still wants funds to strengthen itself and the current asset value for the funds industry remains very low. Only Bt220 billion are in LTFs with only 700,000 LTF investors, while there are 40 million people of working age,” chairman Paiboon Nalinthrangkurn said yesterday,
The Revenue Department told Fetco there has not yet been any cancellation of LTF tax privileges. Whether LTFs will see an extension of their tax breaks will become clearer after their expiry in 2016.
There will still be tax incentives on retirement mutual funds.
SET sees recovery in Q2
Average daily trading in securities on the Stock Exchange of Thailand in the first half of this year was Bt35.6 billion.
However, turnover recovered 32 per cent in the second quarter after the National Council for Peace and Order took control of the country without any violence and investment sentiment was revived by a series of economic-recovery policies that were designed to boost investor confidence.
As of the end of June, the SET Index had gained 14.4 per cent to 1,485.75 points from last year and 4.95 per cent from May.
Foreign investors were net sellers of US$636 million in the second quarter alone and $1.28 billion in the first two quarters.
In June, average daily volume soared 17.8 per cent to Bt48.6 billion from the previous month, in spite of the dampening effect on investor sentiment from the tapering of the US Federal Reserve’s quantitative easing.
Food prices targeted
The Internal Trade Department plans to reduce the price of cooked or fast-food dishes to Bt30-Bt35 per dish to help consumers cope with the cost of living.
Jintana Chaiyawonnagal, acting director-general of the department, said yesterday that it would seek the cooperation of retailers to cut their food prices.
It will also ensure cheap supplies of ingredients, such as rice, seasonings and eggs, as well as cooking oil to traders so that they can sell food at a lower price.
Manufacturers of consumer goods will be asked to supply cheap wares to their distributors in each province so that they or small r