Regional News

Experts Say China’s Influence over Thailand to Keep Growing

Chinese Premier Li Keqiang (center L) and Thai Prime Minister Prayuth Chan-ocha (center R) attend the signing ceremony of two memoranda of understanding on railway cooperation and farm produce trade cooperation respectively after they met in Bangkok

Chinese Premier Li Keqiang (center L) and Thai Prime Minister Prayuth Chan-ocha (center R) attend the signing ceremony of two memorandum of understanding on railway cooperation and farm produce trade cooperation respectively after they met in Bangkok

BANGKOK – The ties between Thailand-China over the next decades will become closer in every way, including trade, investment, tourism and services based on mutual benefit, while China will also play a more significant role throughout the ASEAN region as a key economic supporter, observers say.

Kraisin Vongsurakrai, secretary-general of the Thailand-China Business Council and vice chairman of the Board of Trade of Thailand, said that from now on trade and investment between the two countries would grow significantly. They will see closer co-operation not only under the China-Thailand Free-Trade Agreement but also under the ASEAN-China FTA and the Regional Comprehensive Economic Partnership.

“Relations between Thailand and China will strengthen in all dimensions into the fifth decade of their diplomatic relationship. Thai and Chinese businesspeople will also work together in doing businesses in both nations and in third countries,” Kraisin said.

He believes more trade between Thailand and China will be denominated in the latter’s renminbi currency, better known as the yuan.

Kraisin said the yuan would be used more in regional trading in the near future once it is fully convertible and functioning as an international reserve currency.

He said the ASEAN region would continue to grow in parallel with China, since that country plays many roles in the region’s economic activities including export-import, investment and tourism.

In the past few years, China’s financial sector has become a key supporter for Thailand and other countries in ASEAN, and has encouraged Thailand and the others to support China’s initiative to establish the Asian Infrastructure Investment Bank.

In one instance of Thailand-China collaboration, they will finalise an agreement on building a high-speed railway with total length of 873 kilometers. The first leg will run from Bangkok to Kaeng Khoi in Saraburi province and Map Ta Phut in Chon Buri. The second will link Kaeng Khoi and Nong Khai.

Elsewhere in the region, China and Laos this month signed a memorandum of understanding to strengthen their co-operation in human-resource development. China is also committed to providing financial support to two events in Laos: the 40th anniversary of the founding of the Lao People’s Democratic Republic at the end of this year and the ASEAN Summit in 2016.

According to the Board of Investment of Thailand, China has been this country’s second-largest foreign investor after Japan for the past seven years (2008-2014). The BOI received applications by Chinese investors for 21 projects in 2008, and the total number of projects had reached 74 as of the end of 2014. Of those, the BOI approved 40 projects last year.

Renminbi in Thailand and ASEAN

The combined value of direct investment from China was Bt3.47 billion (S$137,000) in 2008, and had soared to Bt38.2 billion by 2014.

Kraisin said that although the whole ASEAN region had tightened its relationship with China over the years, China-Thailand ties were particularly strong as Beijing sees this country as a key investment and trading base to ASEAN and other third countries.

Sompop Manarungsan, president of the Panyapiwat Institute of Management, said besides Thailand, China would invest more in ASEAN countries, mainly Cambodia, Laos and Myanmar (CLM).

“With the strong ties [with China] and its good basic infrastructure, Thailand will become the bridge linking China’s supply chain to CLM countries,” he said.

Pisanu Riengmahasarn, former deputy permanent secretary of the Commerce Ministry and former Thai Trade Representative to China, said the land-bridge projects linking Thailand and China via the North-South and East-West Economic Corridors would facilitate more trade and investment between China and ASEAN region.

He said more co-operation would be seen in the following decades, particularly in infrastructure development, as well as investment in high-technology industries and value-added manufacturing.

To promote sustainable ties between the two sides, Pisanu advised Thai traders and investors to focus on mutual benefits.

Private ties

Thailand and China can be considered relatives, as one-third of Thais have Chinese blood. Thus many Thai businesspeople are comfortable doing more trade and investment with China, Kraisin said.

He pointed out that as an example of the long-time good relations with China, the Thai-Chinese Chamber of Commerce was set up in 1910, before the establishment of the Thai Chamber of Commerce. The Thai-Chinese Chamber now has more than 500 members.

To promote more trade and investment between the two countries, Kraisin advised Thai businesspeople to cross the language barrier by sending more young Thais to learn Mandarin and promote the teaching of Chinese in Thailand’s schools.

The two governments should also discuss tariff and non-tariff barriers, as despite the FTA with Thailand, China’s provinces still impose high tariffs for some goods. Thai investors should also form joint ventures with Chinese enterprises to facilitate their expansion into that market, particular in newly emerging interior provinces, after many investments in coastal cities.

Businesses that have high potential for Thai investors in China are processed food, alternative energy, and green high-technology industries.

China is one of the largest markets for Thai agricultural exports, mainly rice, tapioca, rubber and fruits. Chinese demand has had a strong influence on the prices of Thai commodities during the past several years.

To promote more exports to China, Sompop advised Thai traders to focus more on the emerging middle-income group and the rising number of aging people.

“Chinese consumer behavior and lifestyles have been changing. With more income, Chinese consumers will have high demand for goods, more beauty products, and food safety, while they will also be concerned about the environment,” he said.

Within five years, 60 per cent of China’s people will be living in the cities. Within two years, China will also become an ageing society, 240 million of its people will be over 60 years old, Sompop said. Thus Thai traders should consider penetrating those markets.

The Commerce Ministry reports that between 1991 and 2014, two-way trade between Thailand and China rose by 43 times from US$1.48 billion to $63.58 billion. Exports from Thailand grew from only $340,000 in 1991 to $25.08 billion, while imports jumped from $1.15 billion to $38.5 billion during the past 23 years.

In the first four months of this year, exports from Thailand to China declined 11 per cent year-on-year to $7.45 billion, while imports from China were up 10.7 per cent to $12.98 billion.

Major trading partner

China has been Thailand’s largest export destination since 2010, and the Kingdom’s largest import source since 2014. Two-way trade between Thailand and China in 1991 accounted for 2.25 per cent of this country’s global trade value. That figure had risen to 13.96 per cent as of 2014.

As well, the number of Chinese tourists visiting Thailand has risen significantly during the past seven years. In 2010, 1.13 million Chinese tourists visited Thailand, 2.8 million in 2012, 4.64 million in 2013, and 4.62 million in 2014. This year, the number of Chinese traveling to Thailand is expected to reach 5 million.

More Thai tourists are also expected to visit China, from about 700,000 last year to 1 million this year.

This is the first installment of a series commemorating the 40th anniversary of diplomatic relations between Thailand and China. The second installment will run this week.

Regional News

Thai Immigration Police Detain Over 26,000 Illegal Migrant Workers

Thailand’s Immigration Police have detained approximately 26,000 illegal migrant workers from Laos, Myanmar, and Cambodia during an eight-day operation in Bangkok and surrounding regions, according to a Royal Thai Police spokesperson.

Mr Adisorn Keudmeuangkhon of the Bangkok-based Migrant Working Group said the drive was in response to an increasing number of concerns about an influx of illegal migrant labor.

“Some Thai people see that many illegal workers are competing for their job positions in the past few months,” he told me. “That’s why the ministry has to take tougher action.”

Civil strife in Myanmar and the recent implementation of a military conscription have driven thousands of Burmese into Thailand, while severe inflation and limited job opportunities in Laos have also encouraged an influx of workers from that country.

Between June 5 and 12, officials detained and checked 20,111 Myanmar laborers, 1,659 Laotian migrant workers, and 3,971 Cambodian workers, according to the Ministry of Labor.

It marked the start of a 120-day campaign to audit workplaces and arrest unlawful migrant workers, according to the government.

Migrant Workers to be Deported

According to Keudmeuangkhon, undocumented workers face fines ranging from 5,000 to 50,000 Thai baht (US $136 to $1,365), deportation, and a two-year prohibition on re-entering Thailand.

Authorities did not intend to file criminal charges, he claimed.

Authorities raided 1,774 workplaces, according to Moe Gyo, chairman of the Joint Action Committee on Burmese Affairs, which advocates for Myanmar labor rights.

He stated that since the military junta activated conscription, there has been an upsurge in the number of arrests of Myanmar citizens in Thailand who do not have a work permit identity card.

All men aged 18 to 35 and women aged 18 to 27 must serve in the military for at least two years. The first group of 5,000 conscripts summoned by Myanmar’s junta will start duty at the end of this month, military sources told AFP on Monday.

According to Keudmeuangkhon, the bulk of Lao migrant workers in Thailand work as fresh market shopkeepers, restaurant servers, and mall salespeople.

Most people visit Thailand as part of ASEAN’s visa-free policy for tourists, but they stay longer than the 30-day restriction once they find job.

“Employers like to hire Lao migrant workers in the service sector because they can speak fluent Thai,” he told me.

Immigration Police Detain Illegal Migrant Workers

The Thai Cabinet may approve an enhanced program for Thai employers to register their unauthorized foreign workers in July or August. Keudmeuangkhon explained.

Last month, the Thai Ministry of Labor’s Foreign Workers Administration office announced that 268,465 Lao migrant workers were officially working in Thailand.

Baykham Kattiya, Lao Minister of Labor, told Radio Free Asia earlier this month that there are 415,956 migrant workers in other nations, the majority of whom work in Thailand.

According to her, the Lao government believes that over 203,000 persons working outside of the nation lack proper work documents.

However, a Lao official familiar with the labor industry informed Radio Free Asia, a BenarNews-affiliated news station, on June 20 that the number of illegal Lao migrant workers in Thailand and abroad is likely significantly greater.

“They go to other countries as illegal migrant workers through different types of methods – as tourists or students,” said the politician. “Thus, it is hard for the immigration police to collect data on these people.”

Government Officials Responsible for Smuggling in Migrant Workers

Government Officials Responsible for Smuggling in Migrant Workers

News

High School Student Dies After Being Electrocuted By School Water Dispenser

14-year-old boy was electrocuted by a water dispenser: File Image

Thailand’s Office of Basic Education Commission has initiated an investigation into the electrocution of a 14-year-old student by a water dispenser in a high school. The event happened at noon on Friday, during the high school’s sports day. The victim was a Grade 8 student.

According to local media in Trang Province, the incident occurred when a teacher instructed the pupil to turn off a water dispenser amid a heavy rain.

According to a witness, the child collapsed while strolling with his friend near a water station. The friend claimed he attempted to assist but was also shocked by electricity.

According to reports, the friend then recovered, left the site, and requested assistance from teachers. A teacher ran to the scene and used a towel to pull the boy away by the ankle. He was taken to the hospital, but it was too late, they claimed.

The event sparked criticism from parents and netizens over school safety, as well as the slow response to aid the young youngster.

Mr. Chainarong Changrua, head of Trang-Krabi’s Secondary Educational Service Area Office, told local media on Sunday that forensic officers from Trang Provincial Police had visited the area. They discovered the blown breaker switch behind the water dispenser, he explained.

The breaker was burned out, thus the authorities assumed the disaster was caused by a short circuit that allowed energy to spill to a neighboring power pole. The student also appeared wet and was not wearing shoes when electrocuted.

According to the Office of Basic Education Commission, a probe team will complete its investigation this week.

The student’s father, Mr Pornchai Thepsuwan, 53, claimed he was saddened when he saw his son’s body. The boy (Wayu), was the youngest of two boys, he explained. He stated that following the tragedy, the school director and staff gave financial assistance to the families.

Mr Pornchai also said he would not seek charges against the institution because he believed it was an accident.

Electrical accidents in Thailand

Electrocution instances in Thailand have increased alarmingly in recent years. Many mishaps occur as a result of improper wiring and inadequate maintenance of electrical systems.

Public locations, such as schools and markets, frequently lack adequate safety precautions, putting individuals in danger. In rural areas, antiquated infrastructure exacerbates the situation, resulting in more frequent and serious events.

Although several high-profile cases have brought these challenges to light, genuine progress has been gradual. Furthermore, the rainy season heightens the likelihood of electrical accidents, as water and exposed wires do not mix well.

The government has made steps to strengthen safety standards, but enforcement is patchy. More education on electrical safety could help to reduce these accidents.

Unfortunately, better infrastructure and tougher rules may have prevented many of these incidents. The loss and injuries caused by electrocution are avoidable, emphasizing the need for immediate action.

Over 200 High School Students Facing Sedition Charges in Thailand

Over 200 High School Students Facing Sedition Charges in Thailand

News

Thailand’s Tourist Police Crackdown on Tourist Scammers in Pattaya

Tourist Police Pattaya: File Image

Thailand’s Tourist Police said it is collaborating with embassies from five countries to combat tourist scams and ten criminal gangs in Pattaya. The Tourist Police Bureau, convened a meeting on Thursday Pol Lt Gen Saksira Phuek-am told a press briefing.

Pol Lt Gen Saksira Phuek-am, the Tourist Police bureau commissioner said the participants included ambassadors from South Korea, Ukraine, Russia, India, and Switzerland.

He told the briefing the he had ordered a crackdown on tourist frauds, such as fraudulent or low-quality tour operators and unfair sales of goods and services. Stepped-up operations began on June 19 and will continue until June 25.

He stated that the agency was working with numerous organisations to increase tourists’ confidence in visiting Pattaya.

Gen Saksira spent time on the famed Walking Street speaking with officers on duty and assigned them to seek for members of ten criminal groups known to operate in Pattaya.

Meanwhile, Prime Minister Srettha Thavisin will visit Chon Buri on Saturday to assess the tourism situation. He intends to visit the site of a future Formula One racecourse near Khao Phra Tamnak in Bang Lamung District.

Prime Minister Srettha recently met with Formula One organisers in Italy to examine the potential of including Thailand on the race schedule in the future.

On Sunday, the Prime Minister will pay a visit to Rayong’s U-tapao airport to discuss development on the airport’s land, with the goal of encouraging investment in the Eastern Economic Corridor.

Police Chief Reinstated

In other police news, Pol Gen Torsak Sukvimol has been reinstated as national police chief following the conclusion of an investigation into a highly publicised quarrel, according to Wissanu Krea-ngam, Prime Minister Srettha Thavisin’s counsellor.

Mr Wissanu released the investigation’s findings on Thursday, after the prime minister formed a fact-finding committee chaired by Chatchai Promlert to investigate into the quarrel between Pol Gen Torsak and his deputy, Pol Gen Surachate Hakparn.

The four-month study revealed conflicts and disorder at all levels of the Royal Thai Police, but it was unclear whether these issues arose from a single cause or several causes, according to Mr Wissanu.

The findings revealed that both Pol Gen Torsak and Pol Gen Surachate were involved, with each team contributing to the tensions, he noted.

Mr Wissanu indicated that Pol Gen Surachate was reinstated as deputy national police head on 18 April following his relocation to the Prime Minister’s Office on 20 March. A disciplinary committee was formed to investigate Pol Gen Surachate, and he was ordered temporarily suspended from the police force.

Because there were no further difficulties to explore, it was decided to restore Pol Gen Torsak. He plans to retire on September 30.

On March 20, Mr Srettha abruptly transferred both top police officers to the Prime Minister’s Office in an effort to address the growing schism within the police service.

Kitrat Panphet, Deputy National Police Chief, was subsequently named Acting Police Chief. According to sources, Pol Gen Surachate could face money laundering charges related to online gaming networks.

Source: Bangkok Post